Also, review utility bills, insurance policies, maintenance invoices, and property tax records to cross-check reported expenses.

I would hit them with a pet violation or whatever your policy is.

Meanwhile most who obsess over entity formation fail to carry proper insurance, work with unlicensed and uninsured contractors, fail to execute contracts, can't explain the difference between being listed as additional insured and certificate holder or request to be listed as additional insured on vendors insurance policies etc.

There are about 14 million millionaires in the United States so only about 4% of United States population.Personally I like accredited investors that have already made alot of money and not looking for high risk deal and just want that steady coupon and if they get upside great but not required to invest in the deal as equity upside is a secondary focus versus the safety and stability of the investment. 

I have been hearing about the market in FL struggling due to insruance policy issues.

Yes, it is important to review the PM Agreement and its policies to ensure they align with your interests and protect you as their fiduciary.

They did not have to do that as they have no refund policy. 

Screen them hard for your safety and for theirs. 

The state the property is located in, homeowners' insurance policy, and whether you rented as an LLC or individual all make a difference.

When switching over insurance,do I provide the lender with a STR/Landlord policy or do I purchase regular home insurance to send to lender and STR/ Landlord policy for my protection.