What are the best coverages and limits to have in insurance policies to cover edge case scenarios like these Insurance Policy with water, mold, vandalism, pest etc. 

This is not just a CA FL thing as many want to believe and not limited to the coast.

I am currently house hacking and renting my basement through my LLC.  My personal net worth is north of $1M.  Do I need additional projections and insurance to protect my assests or will I be covered by my LLC.  If so...

I think the best bet would be to surface it to all the local investor groups here.

Is there a limit on how much each rent increase can be?

I bet you saved $2,000.

DSCR loans are great, but it's a misconception to think they will not count against their max limit of properties financed for conventional financing.

You didn't provide the numbers, but I'll bet you have a lower ROE than the interest on a a 10-year treasury note. 

Respectfully,Zach The best bet is likely to create a new LLC that lays things out in a straightforward but legally strong and standard operating agreement, etc. - LLC doc sets are fairly cheap and easy to create these days (with limited assistance from lawyers) and its much much better to have that cover bases on arrangements like this - it will also fit nicely with financing options - whether you take on debt from a lender in a co-equity situation like your first plan (refinance loan to LLC post rehab?)

I will just not have a clear title to resell, also read there is a 4 year statute of limitations on utility bills so they cant make me pay dates back to 2006.