If you have 5 properties in an LLC and there is a lawsuit that exceeds your insurance (or is excluded entirely) then all of your assets are exposed to the settlement/judgment.

If you own all your properties in your personal name, then any law suit that exceeds or is excluded by your insurance can impact all your other investments and personal assets.

It’s a named peril policy whereas homeowners covers everything that’s not explicitly excluded.

On top of that, if either you or your business partner have any issues that exceed or are excluded from taxes (say a car accident while intoxicated or texting,) then a legal action can impact the investment through a bad judgement or settlement.

If you advertised these, even if not included in the contract, they may need to have been specifically excluded from the contract if they were in fact advertised. 

We will exclude student debt if deferred for 12+ months.

If there is a lawsuit against any of those investment properties that exceeds [or is excluded from] your insurance policy than a settlement/judgement can impact all of the investments you own inside of that LLC. 

To exclude any of these benefits on the potential property would be failing to properly analyze the deal.

And not occupying would blur the intent of the first one as well.If you are going give to occupy for a year I would extend that to two-then you likely have the ability to exclude any capital gain if you sell within the next few years...

If you don't have an LLC in place and there is a lawsuit that insurance doesn't fully cover, or is excluded from your insurance, then they can get a judgement or settlement against the property and your personal assets.