Does renters insurance cover something like this?  

That way you're not only reducing your daily balance on your principle, but you're also building equity in another investment at the same time.then, of course, there's the life insurance option...lol.You may be better refinancing, but then you have closing costs and you are forced to always make the higher payment.

The insurance quote is $1476/year, deductible $2500, 300k liability. 

I believe solid insurance and a good umbrella policy will suffice.

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

I also like to use incidental insurance as an additional layer such as Waivo to cover items.

Deductible expenses include a proportional share of mortgage interest, property taxes, insurance, utilities, and repairs.

Now I have to battle the insurance companies.

Insurance is paying for the stay.

I can guarantee you'll need documentation of lease, and rental insurance before closing on another home.