Need to protect land from possible lawsuits in future.  

The contract is between you and the seller, and although they may be working together on other deals, do you know if the seller is willing to breach the contract and risk a lawsuit so the agent can pocket more money? 

Wouldn't insurance take care of any lawsuits on the rental?

While the tenant probably can't use this issue to stop her eviction, she may be able to use it to file a lawsuit against you!

The under the "More" tab, go to the keyword search and type things like "guest suite", "in law suite", "kitchenette", "finished basement", and "separate entrance".

Currently at 50%3rd:  I am not as sweet of a candidate for a lawsuit, because of the leverage. 

There is a primary residence with an unattached in-law suite in the backyard.

If something happens and the lawsuit going over the liabiilty limits of your existing policy (e.g. landlord policy, auto policy, personal liability, your personal residence, a boat if you have one..., etc.), then the umbrella policy kicks in and provides that additional amount of coverage. 

I have to think this will protect us from passible discriminations lawsuits as well.Side note make sure you validate they are who they say they are with DL or ID.

People in real estate who constantly threaten legal action rarely would actually win a lawsuit if it came to that, but even if they have no chance, the amount of effort you'd have to put in to fight them likely outweighs any gain from actually winning the fight.