Even if the property is worth $800,000, the bank will only allow you to cash out in accordance to their maximum LTV  and what their minimum Debt Coverage Ratio (DCR) is. 

The tenants rental property will cover all of their personal belongings and since you are using a PM company I would assume you will not be keeping any landscaping equipment, tools or possessions at the premises to need that much coverage.

I am looking for home insurance companies that have great coverage and options for protecting pretty much everything under the sun.

I found reasonably priced and good coverage from Allstate.

Otherwise I can drop the windstorm coverage and keep the money tied up but it would only cost 3.6 k a year.

Talk with an insurance agent to get you the correct coverage.

This isn't legal advice, and I don't have a real-world example, but some coverage issues to pay attention to might include injuries to common law employees, injuries involving liquor, and punitive damages for gross negligence.Keep in mind that umbrella insurance policies are negotiated contracts like any other insurance policy.

Part of obtaining property insurance coverage for a home constitutes an inspection by the insurance company.

in my opinion, I would give her a dollar amount and tell her whatever place she wants is her business. if she wants to kick in an extra $20, her business. also suggest she try to get compensation from renters insurance, and you can supplement any difference, up to a certain amount if you feel inclined.

Most vacant policies do not want any rehab being done while they are insuring it.For a flip, get a policy that includes Builders risk coverage and General Liability coverage.