That decision depends on who you are, what you are willing to tolerate and what your market is.I thought the comment concerning the different types of damage was great - accidental, negligent and purposely.

@Thomas SmithThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

You should have an established, written policy to follow.

BP policy won’t allow me to boat contact info in the forums

What stops the tenant from simply canceling the insurance after one month, paying say $15 to move-in and leaving the landlord with zero security?

@Raphael AbreuIn my opinion, the best policy to have as a real estate agent is to disclose, disclose, disclose.

Would an umbrella policy cover that?

At an average price per SFH of $64k, this appears to be a zero appreciation market (meaning appreciation historically is less than inflation).  

Some of the multifamily properties for sale in what I would consider low-class C to D neighborhoods are asking $200,000 and up for areas, I would be comfortable living (I have lived in the city my whole life so my tolerance is a lot higher than some).

The 1% rule is just a screening rule of thumb, to let you move on from properties that aren't capable of meeting it and zero in on properties that might be.