They increased the coverage amount, changed from ACV to ARV.

For your fixer needing conditional coverage post-close:Specialty Insurers: High-risk flexibility.Surplus Line Insurers: Non-standard risks.FAIR Plans: State-mandated option(last resort)

Coverage and terms may vary depending on the type of warranty you purchase.  

You will also need Liability coverage. 

While there isn’t an exact, commonly agreed-upon definition out there, here is a handy definition for this specific loan product:DSCR loans are mortgage loans secured by residential real estate turnkey properties, strictly used for a business purpose and underwritten primarily based on the property.Important note: DSCR loans refer to the specific loan type, and the “DSCR ratio” (debt service coverage ratio) is a metric used for underwriting and evaluating these loans (and other loans), but the metric and ratio itself are distinct things versus what is referred to as “DSCR loans.”Some key things to note in the definition:DSCR loans are secured loans (meaning that there is collateral that the lender can take if the borrower doesn’t pay back the debt).

In light of these circumstances, I'm seeking advice on the best financing options to address this costly project if insurance coverage falls short.

We BRRRR 8-10 per year and the flips supplement the money left in the BRRRRs.

I also require renters insurance so they can get housing coverage  there. 

The only thing I don't like about most of this money is that it's locked up until I hit 59.5 years old but I will be happy it's there to help supplement our rental income. 

But.....most important is ... do you have adequate insurance coverage ?