A lender would require you to have this done, but if you are paying cash, nobody will force you to protect yourself.Third Party Reports: $17KSurvey $2KTitle Recording and Search $5KAttorney Fees ? 

Since I've been told the insurance market is really tough right now in California with most of the big companies (Nationwide, Allstate, State Farm)  not writing new policies to new customers, I'm trying to do a change of broker to a different Safeco agent.

We have renovated the house we live in, and we put way more into it than we should have, because we didn't think we would house-hack it, and we made it customized to us. 

It would be a shame to lose a good tenant.....but you gotta protect yourself at the same time....

The property damage protection is appealing and the 4% monthly isn’t bad.

Would this be something that could hurt the legal protection between personal and business? 

I see you mention having an LLC, so I'll share my generic advice on that topic.An LLC is useful for two things: anonymity and legal protection.

And why we still wait on hold for human customer service reps, instead of being helped immediately by AI.

Thanks for this info...followup question:  since we will probably want to do a conventional loan for a better rate and we have to take that title directly, would we then transfer the title to an LLC we create to protect ourselves? 

Leasing a LTR is classified as passive despite the occasional needs to actively protect the asset.In Ocean City, NJ there was a little store that had stores within it.