The general partners are actively managing the property, making decisions toward renovations, and handling marketing and financial reporting.

Has anyone been through a situation like this and do you have any recommendations or advice on how to handle? 

If I were in your shoes I would send the letter to your attorney and let them handle it from here.  

Whether or not you put in a claim or not, you should deal with a professional who knows how to handle mold removal.The first question I would ask of your agent is, does the company's guidelines allow them to non-renew this policy at renewal. 

Purchase price: $153,800 Cash invested: $30,000 This was my 1st Rental Property in Myrtle Beach SC, using it as short-term rental and leveraging a property management company to handle the day to day activities.

I can't promise you future deals won't be stressful (in fact I can promise you they probably will 🤣) but I can also say they'll be easier to handle now that the process isn't entirely new to you.

This is also beneficial, as the agent will handle/delegate the bulk of the transacton and will negotiate on your behalf.

He is willing to come down on price in exchange for me handling removing the tenants myself (from $105 to $100k), and this was a solution I brought to the table, not him. 

I can not strongly enough recommend using a good REI bookkeeper to handle this.

Whats important to me: #1 cashflow, rent ready although I can handle a little cosmetic stuff, nice neighborhood, parking, laundry.  3-4 families in my area are 350-500k.