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.

I also had the former known Owner served "Notice" by the County Sheriff's department in which the Owner lives in, I received an Affidavit from that Sheriff's office showing "served & signed for by defendant".

To defend something like this will cost you $25k+ but they will settle out of court for a Quarter pounder with cheese a large fry, small strawberry shake and $5k and wipe the note clean.

You will have to spend money to defend yourself either way.2) You paid people BEFORE closing.

Sure interest rates and economic growth as well as property conditions factor into the equation, but only so far as to establish a price that can be defended.

Your insurance policy will not pay to defend them, only you.