In my case it allows me to drop Earth Quake insurance from my individual policy as the whole building is covered.

Part of the issue will be that not many carriers will write mixed (personal and commercial) use if it's 1-4 units (at least where I am based on the earthquake coverage requirements). 

Or you might not be able to get earthquake insurance in some areas for example. 

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

I didn’t find it in time.The safer option that will make me a less qualified loan candidate for a while: Quit my job, live rent-free for a few months (thanks Mom and Dad) while I get my real estate license, move to Denver (and rent), get a job as an agent, use my stash of cash to live off of for a while until the commission checks start to roll in, HUSTLE, HUSTLE, sleep, HUSTLE for as long as it takes to kill it and become an attractive loan candidate again.The yeah right option: buy a shoebox in the Bay Area that would force me to burn ALL of my free cash on a down payment then rent it out to (hopefully) cover the mortgage then pray nothing went wrong (Did someone say earthquake?).

My area doesn't have earth quakes nor do we use gas).

It's outside of earthquake country, outside of forest fire country, outside of canyon fire country and we enjoy the drive (until we hit Riverside ;-)

@Diane Stinebaugh - I dont think its one size fits all type of an answer because imo it dependsA few things to take into consideration would be -- age of the house and how much deferred maintenace it has- Is it A/B/C or lower class type of an asset- Geographical location and possibility of natural disasters like hurricanes, tornadoes, hailstorms, earthquakes etc.

If you were in California I'd warn that buildings from that era fare very poorly in earthquakes unless they have been retrofitted. 

There is about $100,000.00 in mandatory earthquake retro fitting that needs to happen so maybe make this a credit?