Just get a good umbrella insurance policy and use a property manager.

It may have been too simple to be mentioned earlier, but make sure that you get yourself a good umbrella policy.

We have things like EAO insurance(see www.insurancejournal.com/magazines/)and Umbrella insurance(see www.geico.com/information/)BUT you best protection is AVOIDING STUPID ACTIONS, as even with an LLC, EAO and Umbrella insurance, you STILL can be sued and loose.

From what I've been told, All State will allow me to purchase an umbrella policy if I also have my car insurance under them which will allow me to get the must needed umbrella for extra coverage on top of my landlord policy. 

He requoted all of my policies including auto and umbrella. 

If you are that worried about being sued, go buy an umbrella insurance policy of $2 million and call it a day.The best way to protect yourself is to know/obey the law and treat your tenants honestly and fairly.

Alternatively many people choose to skip the LLC and just get a healthy umbrella liability policy, this makes sense in states where having an LLC is more expensive.

I have a $2mill umbrella insurance policy and just getting started this is great information.  

I would recommend getting the rates for that increase and also the cost to add an Umbrella policy.  

Then get an umbrella policy as well.