Establish policies and procedures that nip problems in the bud.

You'll only need one policy.  

I share your concerns about investing in California because of their policies that benefit deadbeat tenants. 

An umbrella insurance policy may get you guys the same result here as well. 

On a broader scale, if anything is in my name then if you p*ss off the government or anything like that they can take seize any and all your property in your name. 

Unfortunately local politics often lead to policy considerations that are intended to drum up voter base appeasement as opposed to doing what's best for the municipality/city. 

An umbrella insurance policy for you while you are actively investing wouldn't hurt either.Look for Facebook groups that discuss wholesale deals locally to source fix and flip opportunities and get on the list for the local wholesalers near you.To Your Success!

According to State Farm agent it should be "Rental dwelling" policy, not home owner policy. 

I have mixed feelings about this as I am of the opinion the government is generally not the best at administering things in the free market, however I have seen first hand some slum lording of STR's and unsafe practices.I think for now if you are in those TX markets you will have to play ball but I think they will keep pushing new rules on you until people push back.

Last week I received a letter from my insurance company stating they were going to discontinue my policy due to the current condition of the property (missing siding) and due to the fact that I am not currently living there (which is not true).I contacted my insurance broker and due to the fact my current insurance company disclosed the cancellation, they could not find another company that would insure the property.I just filed a dispute with the state.