However, you should get some quotes and compare the coverage.

My plan is buy and hold, as I want income to supplement retirement, which is in about 10 years.

And, as a side note, the cost to go from $2M in coverage to $4M in coverage (relating to your “sued by a tenant” issue) really isn’t that expensive.

The potential buyer and their agent called about 10 Companies for home insurance but none of them would provide coverage because even though the panel has been upgraded w/in 10 years, the wiring is the old knob and tube.

To answer about the insurance question the answer is no because you will be sending them an accord form binder showing coverage as follows:named insured line:   the existing owners name - ATIMAline right below that: your entity name ATIMA  "As their interests may appear"  again, you need an insurance person who understands sub-to's to make sure thing go smoothly.

I was given a quote for AMFAM Gold Star Deluxe Policy with Plus endorsement . and also another one with Elite Endorsement.The Plus Endorsement says - Personal Property coverage is for specific perilsThe Elite Endorsement says -Personal Property coverage is for open perilsBut agent says both of them are HO5 type - is that true?

However, if you choose the latter, the encroachment and any other matters that a proper survey would disclose would be excluded from coverage. 

The outcome will depend on if you have cash value or replacement coverage. 

9.What Insurance Coverage Does the Lease Require?

9.What Insurance Coverage Does the Lease Require?