We are being sued by former tenants that refused to sign a new lease so we evicted them and they are suing us for approx 3 years of rent. They said the place was uninhabitable but they lived there for 3 years and now are suing for 3 years of rent plus attornies fees. They called the state inspector and he found nothing that was wrong other than a few things that were fixed. We have an umbrella policy, would it kick in on something like this?

They claim we did not do repairs and they also withheld rent for 10 months before finally paying part of the back rent. They claim they put post it notes in rent checks but my secretary that opens the mails never saw a post it note.

If they have no proof they asked for repair and you have none either, then I doubt they have a leg to stand on, but a call to the insurance carrier is in order just so you know if you have a concern or not.

They can possibly win what they have proof for. 3 years NO.

Notify your umbrella insurance carrier to determine if it will pay an attorney to defend this.

Request that they produce copies of the notes they claim were attached to the checks. These notes supposedly described needed repairs of which you were not otherwise notified?

Do they still owe you rent? If so, countersue for what they owe plus legal expenses. If the Inspector didn't find anything major and they have no proof, they will lose.

But yes, discuss it with your carrier.

are suing for 3 years of rent plus attornies fees.

In most states, each party pays their own attorney fees, even of they prevail. Unless, of course, the lease provides otherwise.