Personal Injury (PI) — under general liability coverage, a category of insurable offenses that produce harm other than bodily injury (BI).

So like @Bob Norton says your partner and your cpa need to reflect the substance of the transaction. 

I found very first roommate, and unfortunately it didn't work out and had to evict her for not paying rent on time and using illegal substances.

Skirting license laws and harming sellers is not a good way to start out in this industry. 

Make an alteration to the point where you convert all or the majority of the common areas in a home to bedrooms may increase your rental income but could seriously harm the property value when you go to sell at some point in the future.

@Juliette Lerner There is no harm at all interviewing people you don't have referrals to.  

The apt doesn't sell but you cancel the contract on the new property within the due diligence time period - No harm no foul3.

and if 3200 of lost rent is going to harm you in any financial way then my take is your undercapitalized to be a Land lord in the first place.  

Oh, there's certainly no harm in it!  

Even if the BRRRR goes totally awry, worst cast scenario would be leaving $20-30K in the deal, which the interest wouldn't cause much harm.