I am quoting insurance companies and for liability coverage, I was wondering if the liability coverage should be approximately the same value of assets that are within the LLC (in this case, 1 house of $170K), or, should I have a much larger liability coverage ($500K-$1M)?

I appreciate your data, your consideration of all of the issues, your capacity to be self-reflective and recognize the imperfect choice of the far better plans and proposals, your professionalism with presenting your perspective and your willingness to share your point of view.

Unfortunately these placement firms tend to focus on larger check amounts.

One, the mom and pop investor will waive their white flag and sell to a larger outfit. 

I ask because it seems like you have two clear choices - Either finish the rehab and sell potentially at a loss, or hold the property while renting it out so you can hopefully benefit from gradual appreciation and using the rent to help make any principle paydowns on any loans you may have. 

However, office vacancy rates remain high and are expected to peak at 19.8% by mid-2025.Larger companies are still reducing space, while smaller firms are shifting toward expansion, having reassessed their post-pandemic office needs.

You can overcome this by having a larger down payment or partnering with someone that has both.  

I currently own a home in Hawaii, unfortunately my family and I are moving and we want to make the correct choice.

Their analysis is based on the growth of the larger metros throughout the United States that drive regional tourism into various vacation rental markets.

Wise choice. :)