A lender does not want their money to be tied up this way. 

I recently had a buyer interested in a home that had a very similar situation, but tied to the Solar system that was installed on the subject property.

This means your mo why would be tied up until you refinance out of the loan.Please let me know if your interested.  

Many investors do not want to tie up their personal home in an investment property however this may be the cheaper and wiser decision depending on your situation.

If they will be turning around and renting it our, then they would get a Rental Dwelling/Landlord policy.The seller should be added as an additional insured as they still are tied to the property and could be named in a lawsuit. 

@Jim Wang,Like Greg said, good to see BPers with Hawaii ties.

I can say without a doubt that this flood brought a lot of us back to knowing what it is to help and care for our neighbors.Stay strong - we will all be stronger on the other side of this situation!

@Tony Gunter  yes frustrating.. part of it I totally blame on the absolute rampant practice of the wholesale community there tying up MLS properties and flipping those like they were off market true wholesale deals.. the apprasiser are not dumb...

@Todd Smith Do you already have the property tied up without an approval?

All plans could be stronger, or refined.