This is our “retirement” money...insurance if you will in case real estate investing doesn’t work out for us.

Same with health insurance.

But, from my understanding, if something goes wrong that he should have caught, his insurance will cover the repairs. 

Does anyone have any suggestions for  insurance companies?  

It's in a nice safe area that I would be thrilled to live in.Now I'll go over some of the financials.Price of the property: $120,000FHA loan payment: $1000 (Rough estimate including loan, insurance, PMI, property taxes)Current rent per unit: $550, 550, 600, 600.

They own one or two houses, owe nothing, and figure they've made a profit if they bring in more than their taxes and insurance costs.

But only if you don’t have to buy flood insurance.

FHA or 10% both with PMI insurance 250-500 a month.

You don't have to justify it, but if you want to give them a reason just tell them it's nothing personal but it's WAY under market and you can't afford to subsidize their rent any longer since the cost of everything associated with owning the property (i.e. property taxes, insurance, etc) is increasing and you have to raise their rent to off set that. 

What does an LLC give me that landlord insurance , umbrella insurance and a good accountant won't give me?