My vote is for a substantial liability policy.

Personal Liability $1MM on each. 

Caveat is that you have to max out the liability coverage with the rental properties in order to be covered under the PUP.

You just need to show proof of Commercial General Liability and Workers Comp insurance coverages as well as pay an annual fee (like $100-$200 or something).

You don't want to sell the house w/ potential liability issues.

Some brokers aren’t too fond of agents that invest and view it as a potential liability.

It’s just a random asking for a freebie, and the liability could get sticky if the guest who stays is not the guest on the reservation.

If your insurance company doesn't allow them then it doesn't allow them, unfortunately.If one of our owners is ok with the pet in the home, we require $300k in insurance liability coverage from the tenant with our company and the owner listed as additionally insured.

You're getting ready to turn over one of your most valuable assets over to the person you're trying to nickle and dime and which will ultimately help you define it either as an asset or a liability.... go ahead... bargain all you want but likely you'll be posting on BP with all the other disgruntled owners on how the PM failed you... regardless of what you read or hear it's a universal truth 'you'll rarely get quality service at rock bottom pricing', heck I've got a 19 yo. cousin that will manage your rental for 2%... want to take him up on that?... 

I assume I just set it up like a mortgage, with a note payable and pay the liability through cash?