And get them to list you as someone who should be notified if they let it lapse.  

Originally posted by @Joe Cummings:It's my understanding that "additional interest" really just means you get something like an "Accord Certificate"https://www.acord.org/standards/forms/Documents/ACORDCertificatesFAQ_201004.pdf Hi Joe: I think it means only you get notified if the policy lapses or the tenant cancels later.  

Unfortunately, 100% of the times this has happened for our units (4 times so far all between 1 week and 8 months) the tenants have let the coverage lapse and were out of terms of our lease. 

If there was a time lapse between you accepting them and a lease signing, get a non-refundable deposit from them to hold the house.

How do you ensure that they won’t foreclose or lapse on payments while you’re financing?

If the policy ever lapses or is canceled, you'll be notified.

Their rent payments come through in full and on time every month, they take care of their own utilities and have never given us reason to think they'd let utility payments lapse.

You need proof they caused this.No proof, just pay for the repairs.Make sure you are listed as a loss payee on rental insurance and you will be notified when there is a lapse in coverage. 

Usually the insurer will notify us of renewals or lapses when we are named. 

Used to small per transaction companies would take on anyone.I did it as well years ago.What I found was rusty agents doing 1 deal a year where I had to do the whole transaction to make 300 bucks.They couldn't hack it full time so had to work another job and could never be reached.Then you have the expired agent licenses,lapse because of no child support payment,or student loans,IRS taxes,non payment of state license dues,not meeting education requirements etc.So the per transaction companies got smart.If you are a brand new agent they make the first say 3 to 5 transactions at 70/30 or 60/40 and then after that you get the 100%.This way the broker gets paid for holding your hand.We also do this requirement sometimes if the agent does not produce so many transactions a year before coming to us as they can be really rusty in the updated contracts and processing a transaction.A new agent is bad enough but a new agent that also wants to buy their first investment property is a double whammy as far as liability risk to errors and omissions policy and time you need to invest with them.I think finding one for split first then going to 100% might be more realistic for you.