I bought from a primary homeowner in Indianapolis metro area who took really good care of this home (I did live in this house and rented it out when I moved back to California) and from a flipper in Indy more recently.As far as primary homeowners, they can range from taking really good care of the house to someone who has a lot of deferred maintenance - I renovated a local property that had a lot of issues.  

Using escrow company & title insurance will protect you from an unwanted surprise.

You have a mortgage on it so no one's going to go after you; you'll just need good rental insurance and (recommend) an umbrella policy. $200-300 per month isn't great, so make sure it really makes sense to keep it as a rental.

I was wondering if anyone had any tips or tricks for this area dealing with the insanely high property tax and insurance rates?

You can - 1) establish a trust for asset protection, 2) utilize the Homestead Exemption for property protection, 3) consider tenancy by the entirety for marital property (this might just be applicable to California, my home state)4) make sure you have adequate liability insurance for additional protection, 5) think about forming a business entity to shield assets, 6) and have proper estate planning for asset distribution.Seek tax and legal advice from experts in your state.

My insurance company said they wouldn’t cover the policy with the fuse.

I own a lot more than 2 homes and all these years later still have never bothered with LLCs - I just keep really good insurance.

Don't forget to add fringe benefits such as health insurance and also payroll taxes, etc. 

We are finding conflicting information as it pertains to insurance and liability. 

Home warranties are basically like insurance for the house systems and appliances.