One important tip I might provide since I'm going through the purchase of a new umbrella policy right now is to remember that most umbrella policies cover only above and beyond a certain loss threshhold.

This sounds like a total loss for the landlord.

You can supplement this with an umbrella policy that covers you on the back end for any non property related losses such as a car accident.

The 2 months wont make up for potential loss.

She won't be buying anytime soon due to a job loss two years ago and extended unemployment (credit wrecked).

The magnitude of the loss determines how much your premiums increase so for a minor claim, there may not be much of a bump.

In the end, the seller's claim is with the LA/broker for all damages and they can only help offset the loss by getting the $2500 in EMD back to the seller.

Renewing with the same carrier or switching to a new company at renewal time does not result in the loss of prior acts coverage as long as the renewal or switch to the new carrier is completed before the date the policy expires.

This idea of passive losses offsetting other income is often used to put some lipstick on a piggy rental.

My concern is that I need to pay the 1st off rather quickly (before the sale), but would be exposed to a loss if through some technicality or BK on the same day as the sale, the sale was un-done.