And if their house is vacant, you can probably get the city/water company to turn off the water to the property.

What are the best coverages and limits to have in insurance policies to cover edge case scenarios like these Insurance Policy with water, mold, vandalism, pest etc. 

Quote from @Jayant Reddy: Mold requires a source of water.

What adds value is the sewer/septic, water and electric at the site.

Hello Jack, in Texas I find a lot of investors using the Subject 2 method, especially with FHA properties where they are at or under water on their mortgage, but most of the mortgage rates are under 4%.

I own a two-story duplex where water constantly drips down the siding, even when it hasn't rained for days or weeks.

Purchase price: $340,000 Cash invested: $7,000 Water front, 4 bed, 2 bath, detached 1 car garage, pier and dock.

I found the county criteria which reads as:"Property must be minimum of 1 acre, meet the underlying zone district, have adequate parking, meet the requirements set for by the Wildfire Hazard Overlay District, have valid water and sanitation, have legal access, use the primary dwelling unit, be free of violations, and have no substantial detriment to the intent of the Zoning Resolution."

Mainly because I "assumed" how long could utilities such as water ,trash and electric really get backed up without getting shut off.

If he doesn't want to do that, boiling water works well-but make sure it is very targeted.My guess is he's trying to push you to see how far he can go because you're a new landlord and a woman.