Or is it an attempt to protect IRA owners from themselves by preventing them from taking larger "risks" on private equity?

Most of them are written on a “personal” policy to where it’s in your name and then we name the LLC as an additional named insured in the policy to protect the LLC for liability as well as the property.

We do that as a "Utility Offset" in order to protect our owners from extremely high utility bills when there are more than the normal guest count.Hot tubs can be incredibly valuable!

In lieu of huge down payments that only protect one side I would suggest buying a US Treasury.

Average fees charged to consumers, for mortgages, have gone up 40% in the last two years. 40%!!

My 4th property I sourced and manage on my own, much more time consuming but much more cashflow too.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

Personal Injury Protection\But there are others that may also apply in your situation.Your umbrella would normally require that you have underlying Liability coverage of a certain amount. 

We own our primary residence, have always taken the standard tax deduction, have 4 children, one graduating high school this year, have never owned a business, don’t know what could possibly be written off or what needs to be saved throughout the process, and would prefer to have a cpa and attorney assist with the set up of an LLC to ensure we’re getting the most tax benefits and asset liability protection as well. 

A security deposit is a way to help protect your asset; your rental home.