Business Line of Credit, Full Coverage Insurance Needed?

[Derek Sperzel]

We own some rentals in Ohio which cash flow well and we intend to hold them for the foreseeable future, but aren't worth a lot from a retail value perspective.  They are worth maybe $140k across four properties, we own them free-and-clear, and I've been considering leveraging them with a Business Line of Credit (BLOC) in anticipation of the next Market Correction.  Due to the low retail value we only insured them with a liability policy, and I would like to know if a Bank would require Full Coverage Insurance before they would approve a BLOC?  

Also, if anyone has a lender that they'd recommend for BLOCs in the Dayton or Springfield, Ohio area, please let me know by replying or PM.

Thanks, Derek