Can those who use this 'rule of thumb' stir up some conversation and defend your rationale?! 

A colleague of mine got sued by his tenant and he had a positive experience with AAA not trying to get out of defending him.

If you tear down to the studs, claiming it is ready is difficult to defend. 

It should be easy because this ghost tenant won't defend itself or show up at court.

The defendants — Woodbridge, 281 related companies and Shapiro — did not admit or deny the allegations.Woodbridge, according to the SEC, told investors it would use their money to make so-called hard money loans — a type of expensive, short-term loan that’s secured by property and is often used by house flippers and other property developers.

A lot of people skimp on insurance but if you get a sue happy tenant with a good lawyer they can take it to you just simply defending yourself and if they are successful it can ruin your net worth.

They trip and fall in your driveway and threaten to sue you, now you need to pay an attorney to defend yourself.

Here in VT, if the tenant (defendant) answers, then they set a court date. 

However, damages, fees, or costs are not recoverable under this section against a retailer who has, in good faith, engaged in the dissemination of claims of a manufacturer or wholesaler without actual knowledge that it violated this part.(3) In any action brought under this section, upon motion of the party against whom such action is filed alleging that the action is frivolous, without legal or factual merit, or brought for the purpose of harassment, the court may, after hearing evidence as to the necessity therefor, require the party instituting the action to post a bond in the amount which the court finds reasonable to indemnify the defendant for any damages incurred, including reasonable attorney’s fees.

“I may look young, but I’m the hungriest.”It makes you look powerful to acknowledge what’s so rather than defend it and then use the opportunity to tell people who you really are.