I also have umbrella in case things get taken to the next level.this is why trampolines are a landlord's nightmare, not good clean fun:

I will spare you the details on how my logical retort of; use a tarp, rent a van, borrow an umbrella, etc. went unheard.So as of today, the hold overs are out after a free 2 months of rent and the rehab is underway.

And I carry an umbrella insurance policy.  

Umbrella policy or some other kind of landlord liability insurance .I own this condo in my own name , no LLC yet.Gieco (I have my Auto Insurance) has quoted me $365/year for a 1 million dollar Umbrella Policy.

I would still have umbrella and property insurance, this would only be for something catastrophic.Thanks

@Atwan Kwan Do you have an umbrella policy?

explore umbrella policies.

I knew about the concept of househacking before I even knew that the practice fell under the umbrella term of "househacking", which I just learned today.My question today is this: If you were to take out an FHA loan and househacked an owner-occ 4 flat and payed off the PITI in full, would it be possible to be able to convert this said property into a non-owner occ investment/rental property, refinance the property and pull out equity to use to take out another FHA loan on a 4 flat owner-occ to househack?

If the damages exceed your $300-500k liability and the $1MM umbrella you carry (hopefully, they're quite inexpensive for the coverage they offer), does the tenant's $100k policy make a real difference?  

If a tenant signs a 2 year lease...pays first, last and security....then at the 3rd year...obtains HUD assistance....how does the LAST MONTHS RENT get handled after 9 years under the HUD umbrella??