But if your neighbor does not have a business license and insurance, you may be open  to more liability for injuries or damages caused by his performance, either to tenant or tenant's guests, or if neighbor injures himself while working on your property.       

Insurance will cover instances where a tenant has an injury on the particular subject property(internal threat), but if the owner gets sued from other properties(external threat) or from something unrelated to Real Estate(personal litigation/business lawsuit), the rental properties under his/her name can all be foreclosed to pay for damages.  

I’m from the Los Angeles area (the SF Valley to be specific) so this area is not too ideal to start out as a brand new real estate investor.I actually got in a bad basketball injury and I’m currently in a wheelchair for most likely the next year.

Thankfully everyone was evacuated safely with no injuries.

Personal Liability: For claims due to Bodily Injury or Property Damage that you becomeLiable for and which is covered under the policy.

If a tenant uses a garage space as a bedroom without your knowledge, you would not be liable for injury just the same.

Since you are leasing to the operator, you would want to make sure that they are liable for damages and/or injuries on your property.

Hi, we won a lawsuit against our dubious landlord in SF (I'm a landlord too) as the house was well below habitable standards in many ways and resulted in personal injury and property damage. 

Not just your insurance premium, but the looming specter of a negligence, personal injury or wrongful death lawsuit. 

Landlord insurance protects the building and it’s stuff (appliances, flooring, walls, etc.) and provides some insurance for personal injury.