On your end, how hard you going to fight through errors and issues?

Insurance companies are not in the business to spend money, you need someone on your team fighting for you, and that isn't your broker or the insurance company.  

@Ward Dement's example of the Tampa area, Park City UT is heavily regulated, Colorado ski towns are fighting back against STRs in a big way, and the list goes on. 

You pay a premium, but nothing fights cash like cash.

Did the LLC owner not get an attorney to fight this before it turned into a judgement?

You can expect at least 1 tenant to put up a fight and force you to go through the eviction process.

The problem is the top tenet has become unruly and needs to be evicted, the houses were renting for 850 each and i am not knowledgeable in evictions. but if this gets me into the game ill fight tooth and nail to get this property if its worth it!

Raise rents andbuild to protect market.Interestrates- let's say 4%, I can only see them going up.Supply Chain- Steel from China is fighting to get through the same ships and portsalong with toys.CargoContainers- You can’t buy a used container now.

You want the insurance company’s lawyers fighting the lawsuit to defend their million(s) of dollars not just paying out the lower limit and letting you pay the rest.

You can't fight the power of compounding interest.