Frequent hail storms pushing insurance rates up in that market. 

You didn't mention the higher Florida insurance costs. 

Many insurance companies do not allow adding a landlord as additional insured.  

The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

First off, I really like how you’re thinking beyond just the renovation.. you’re creating a tailored investor strategy that builds excitement around upscale features.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

The amount of downpayment requirement insures buyers having "skin in the game". 

Here in the USA you need what's called a "construction loan" and it's also very hard to find a company that will insure you if you're a newbie.

Does anyone else do it like this and who do you use for liability insurance?

You also need to consider that at a lower percentage of money down you will be paying a Mortgage Insurance Premium or MIP.