As a professional athlete this type of thing happens all the time.

They would do this as part of the recovery process.You are correct, failing to get an owner's policy is the same as the LLC self insuring for its interest in the property.

I currently am a student athlete at Northern Illinois looking to invest after school!

For example 20% of the people have 80% of the wealth, 20% of athletes make 80% of the money in sports and so on and so forth (you can search the Pareto Principle on YouTube and find a ton more examples of this principle).  

They will be buying unlimited mortgage backed securities in an effort to keep rates low until the economy reaches full recovery.

The recovery for housing and incomes, however, was different.

The only tax implication would be depreciation recovery. 

If so, the process is often started with a letter of intent, which lays out a plan of recovery and sale. 

It was as the market really took off after it's 2010-2014 recovery period, and deals were thin.

@Matthew Fields  one option I've heard of is putting them in ETF's for quick recovery if needed, but, you risk the volatility of the market.