NO Work done by tenants on my property PERIOD, Insurance nightmare.If the light didn't work,, then buy one and have electrician install or do it yourself.Now that's its over,, simply write check to tenant for cost of light, / labor, / and have him write you the proper amount for rent.You'll learn once you have someone fall off a ladder and sue you for every dime you got.Hire it or do it yourself and if you hire it done have a person that's got his own workers comp insurance or add that to your policy for coverage. 

What exactly is an acceptable debt coverage ratio?

Also, insurance may differ for mobile in coverage and what is required (learned from my REI workshop). 

Personally I think you should have at least $300k in liability coverage, and consider getting umbrella coverage on top of that.

If you want the insurance company to do 100% of the repair, then State Farm probably makes more sense.It sounds like the 2 quotes are too little or too much coverage for you.  

Put more coverage on the property...It's also prudent that you do due diligence on the LLC formation.. because a good lawyer will try to find loop holes in your LLC to get to your personal asset...

Do you have a loan that requires you to carry full coverage on the mobile home....if so will they allow you to tear it down?    

I'm also sharing a more comprehensive approach to finding capital and building an investor base if you are thinking long term which you should be.  

That is roughly the coverage we have and no pool or trampoline either. 

Besides, umbrella policies are cheap so I would recommend just getting one.Investopedia's definition of an umbrella policy:An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's home, auto or watercraft insurance.