However, investors like you can and do frequently use them for both managing real estate investments and defending them from lawsuits. 

Failing collection attempts, file a lawsuit and obtain a judgment in small claims court (or in regular court if total damages and rent exceed $10,000).3.

Unlike you, it’s not going to get in a car accident or personally hurt someone, the cause of most large lawsuits.

Failure to disclose is one of the top reasons for lawsuits in real estate transactions.

I'm thinking I'll have to wait until I do the Quiet title lawsuit/get a clear and (an insurable title) title insurance.

You'll see online the whole menu of 'lawsuits of the day' filed by tenants who end up not getting the next rental because of something said/not said by the former/current landlord. 

One good point I saw was liability coverage/umbrella policies in case of suing -- which begs the question -- Does an umbrella policy covering the rental property protect against a lawsuit that would arise from this situation?

My guess is your HOA is not 51% owner occupied and may have small money on reserves or a pending lawsuit.

Luckily we were able to find a happy medium. 4 bed/3bath that had separate mother-in-law suite above attached garage.

Save the money on lawsuits and get this fixed.