Most title companies will never give title insurance on properties bought at tax auctions.

Insurance is paying for the stay.

Are there any insurance policies or providers you recommend for this unique use case?

The insurance would not be valid for two reasons:1) the insured “individual” is no longer the owner2) the insurance was for an owner occupant, not a rentalMost people DO change the insurance to reflect the llc as owner and as a rental.

As I mentioned above, the risk of being sued, found guilty, and fined more than your insurance will cover is almost non-existent. 

For me it’s been running toilets and the water/sewer line that ran underground (i recommend getting insurance for it).

From what I saw for the most part the big names you typically hear in insurance typically performed well for people. 

Now I have to battle the insurance companies.

You need to think about not just the potential income but also the potential problems such as city ordinances, state law, insurance, potential eviction issues, etc.

I have already shopped insurance, and the sellers are providing $5k towards prepaids/closing costs.