Here is a link to FHA assumption guidelines which would require you to pay to have the deal (https://www.hud.gov/sites/docu...)For quick reference i have put the section of concern below"When assuming a mortgage not subject to the HUD Reform Act of 1989, aninvestor must pay down the outstanding mortgage balance to a 75% loan-tovalue (LTV) ratio if the current owner occupant requests a release of liability,and the mortgage was originated by an owner occupant pursuant to a Certification ofReasonable Value (CRV) issued by the Veterans Administration (VA), or is one for which a Direct Endorsement (DE) underwriter signed an appraisalreport on or after February 5, 1988.Either the original or the current appraised value of the property may be usedto determine compliance with the 75% LTV limitation.This requirement continues throughout the life of the mortgage."

I stopped working at the Ramsey Endorsed firm because I wanted to be my own boss and I was tired of making commission for someone else.

There are many endorsements that are available on the homeowners policy.

@Wayne Brooks  in our market we just add an endorsement to the final check  job paid in full. even the banks do this.. in our market.. but if the guy still files a lien for spit.. that's wild.. you could sue him for slander of title if he has indeed been paid in full. 

If I do get the property, then just endorse the check.

Some Builders Risk Policies offer a Flood Endorsement   check out usassure it's a Zurich product

I have an endorsement for drainage backup, I’m more concerned that the policy was a standard home owners insurance and didn’t include the rental portion.

Most PM's don't show up, can't endorse rules, and defer responsibility endlessly. 

Make sure you read through the entire policy including any endorsements because there could be exceptions and changes in coverage. 

(b) As to any such loan or forbearance of money or credit sales made in compliance with subsection (a) of this section, neither such person, corporation, trust, general partnership, limited partnership, or association, nor their heirs, successors, or assigns, nor any surety, guarantor, endorser, or any other person, firm, partnership, association, trust, or corporation which may become liable, in whole or in part, for the payment of the debt and interest agreed to be paid thereon in accordance with the terms hereof, or any extension, amendment, or renewal thereof, may raise or claim the defense or benefit of the usury laws or any other law prescribing, regulating, or limiting such rate or rates of interest.This section seems to defeat the usuary laws if by contract both parties agreed to the interest rate by saying that no one who agreed to such interest rate shall be able to claim the usuary laws as a defense as long as the loan is for more than 2000.00.I find this particularly interesting!