If all of a sudden you have to take a loss, can you afford it?

One you can move up slower at renewal, the other you just cut your losses and prepare for a new tenant. 

If the work wasn't done to code, you could end up paying repair costs, building code fines, and suffering loss of rental income, since some jurisdictions don't allow you to collect rent until the building's defects are cured. 

However, now I'm motivated to get my losses back and get back into the game again.

Speaking strictly from a claims standpoint, (if you had a loss that you needed to file a claim) the umbrella would likely be the better option, as sometimes something that may be denied under your liability policy may be  covered under an umbrella policy.

Thanks Jon, that's what I thought.I'm in a non-real estate partnership out of state (CA) and it's involved.I'm silent, passive partner, still one day in CA triggers more.I would assume I would still file with a loss to have the loss carry forward documented.

Look into the rates in the area and see if that just might tip your profit and loss statement in your favor.

Down here the law says the landlord must mitigate damages from loss of rent if a tenant jumps ship.

Depending on the individual and company adjusting the loss, that could end up being very little.  

Because your basis is $50,000, you actually have a loss (the selling costs), so you would have no income tax.