Beyond the bedrock issue, soil conditions can be costly if the property has problematic soils such as too much silt, deep topsoil, or extensive wetlands.You'll also want to know what ordinances are going to affect your budget - things like tap fees, tree ordinances, storm water retention policies, etc.Bottom line is that you have to investigate ordinances, off-site conditions, and on-site conditions before you can even begin to budget your development.

If you're running a large portfolio then you would have policies and procedures.

How would an umbrella policy protect against a security deposit related claim?

I don't think any insurance carriers will give you a new policy these days if there is active K&T. 

The PM should be an expert on state law, and they should have policies and procedures in place to handle these situations.

Your primary strategy should be to have the Contractor and all Subcontractors add you to their insurance policy as Additional Insured. 

What kinds of policies do you think might help ensure ongoing affordability as Texas continues to grow?

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Tell them your policy and they can either abide by it or move out.

I also assume you have homeowners insurance rather than landlord policy which is invalid if you’re not living there.