However I'm afraid she'll be able to claim financial hardship due to health issues despite having easily $400K of equity in her property. 

Based on your situation I would always lean towards preventing moisture in the crawl space and looking out for possible tenants health.  

Mold is everywhere, but there can be a health issue if readings are excessive as compared to the control sample and as compared to what is considered a normal indoor fungal ecology.

or other governmental entities (including health agencies) have educational materials that may shed some light on the problem?

If you cannot afford the health and safety requirements of owning real estate, I'd suggest you find another type of business. 

Perma-bears love precious metals, and try to stay primarily in these physical goods: Risky.I think a diverse and balanced approach is your wisest path toward financial health and asset protection.

The properties also appreciate normally over time, so this property 10 years from now will show 10 years of depreciation on it lowering the value even more when in reality the value will most likely have appreciated greatly.I understand that the book value of the property is already entered and is standard, but it is failing miserably to give a true and accurate snapshot of the company's health.  

., they want to upsell you home, auto, health, life insurance, etc.)Dictator, not a consultant (e.g., they force coverage on you instead of tailoring the coverages around your unique situation)Only represent one insurance company (no single insurance company can offer the right policy, at the right price for all situations)Their process for getting a quote is difficult and cumbersomeTheir underwriters/inspectors seem to always find a problem with a propertyIf you spot these warning signs, you should search for an insurance agent with these attributes: Have a depth of knowledge gained through years of experience working with real estate investors like yourselfHave a unique consultation process specifically crafted for working with REIsHave access to a minimum of 50 insurance companiesWork with a large independent insurance agency or group (the larger the agency, the more leverage they have with insurance premiums and claim settlements).

For some success may mean financial achievement, for others being successful might simply mean achieving a state of wellness, health, or happiness.

My wife and I have our own health and wellness business which has been really successful, however we are looking to build long-term wealth through real estate investment.