I also have a 5 million dollar umbrella policy over all my rentals, but I am a freak about liability protection.

I was told for liability protection to obtain $300k in liability on an umbrella policy for all of one's rentals.

Gutting is usually the best way, using safety equipment.So the concensus is stay away, you are smart to make that decision.

I'm trying to get the Townhome HOA to increase the liability policy but they need something from FannieMae to make their case.Thanks

Property management is sue happy.E and O insurance carriers charge money with policies based on data they have learned over time just like car insurance.Usually when tenants and owners have an argument the attorneys say let's go after the property manager.Property management doesn't pay much,is a huge headache,and is sue happy.E and O knows PM is the highest form of litigation claims coupled with construction projects.When a broker sets up a PM company they are smart to keep a separate company so if sued they can shut it down without affecting the regular brokerage or their other assets.

Some general feedback on your list:Copy of Collateral File - mortgage/deed of trust, note, modifications, forbearance, title policy, assignment chain (if not recorded)Copy of Credit File - Origination documents - includes 1003, disclosures, credit reports and HUD - these are not always present in institutional files, their absence does not negative your enforcement capacity.Copy of Servicing File - payment history, servicing notes, etcCopy of Legal File - foreclosure, bankruptcy (if present)Property value through a BPO or similar report will be your responsibility.

After the cost of the annual report for 12 properties you could have already increased your Umbrella Policy significantly.Bottom line a significant Umbrella policy and adequate landlord policies on each property should be had and then I'd look at the requirements of any LLCs.

I am not too familiar with insurance companies and have had trouble with them messing things up "not sending a refund and cancelling my policy after sending them a written cancellation".

If lender gets a title policy, any claims should be covered by the policy.Interesting, Chris, thanks for your response.

In the US policy makers' point of view, buying a home is a much better investment than owning regular financial assets.