Insurance liability, I personally know 2 families that lost their children in home pools.

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

Quote from @Kegan Scholl: Quote from @Jake Andronico: @Kegan SchollAwesome strategy!!

The insurance agency I work with is having trouble finding a company that understands that type of policy and also offers it.  

Factor in carrying costs (utilities, taxes, insurance).2.

2) Their contractor must be properly licensed and insured and we require copies of all this.

Insurance is definitely an issue there, and will continue to be.

Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. 

Other Strategies: Are there safer or more profitable alternatives I should consider? 

It might have been bound but many insurance companies have put those new policies on hold if the purchase has not happened due to the disaster and letting the mortgagee(lender) know that the policy is on hold.