I'm getting nervous that the area is eventually going to become unlivable because of the prohibitive cost of the insurance.

Consider this the cost of your education.

It doesn’t cost you anything and gives the tenant time to rearrange their entire life around your decision. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Planning to sell my property in vegas, just wanted a second opinion on if these are typical, fair costs in today's market.

You pay your agent at closing (think of it as an additional closing cost) Depending of the situation and of these options can be used by you and your agent to negotiate with the seller.

Basically dollar cost averaging. 

It sounds like you would make them available at an additional cost?

The instruments needed for the transaction will be state specific which means you should have someone from California chime in with resources who can provide low cost documents (as these will be boiler plate).

The best place to start is with a spreadsheet that has every every cost itemized.