You might want to agree to appoint a neutral to arbitrate any dispute.Also, if you think that you might want to own your piece through an individual LLC or trust someday, make sure that the language of your LLC agreement permits a transfer to a related entity whenever you want to do so.

I am guessing they probably needed access to your funding to make this project happen, and are profiting besides the 50/50 split.Partnerships should always have everything spelled out in writing, and anything not contained in writing that doesn't have an arbitration clause or impartial judge should be renegotiated and put into writing or it shouldn't exist. 

The respective insurance company on each claim is bound to find out of the other policy's existence and could (more than likely would) attempt to invoke the "excess" clause of it's own contract, potentially leaving the owner waiting for courts/arbitration to settle...

Health Care Arbitration Act 6.

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

So let's see.If I did not received the package within 2 weeks, shall I proceed to go arbitration or small claim court?  

Before going forward, read your contract, there should be some arbitration clause there, and the following advice is not legal but only based on knowledge of being a contractor. 

Arbitration and Attorney’s FeesLike so many agreements these days its important to think about whether or not to have an arbitration clause in your agreement.

The review board agreed to lower the value a bit more but agreed with allegations by appraisal district that my purchase was not “an arms length transaction”I purchased the home as anyone could have and had no prior relationship with seller, HUD.I have on a number of occasions gotten values reduced with a recent sale price as evidence.I’m thinking of going to arbitration or district court.

In general, the requirements for payment from the Consumer Recovery Account include obtaining a final civil judgment or arbitration award, or a criminal restitution order against a licensee.