Your insurance is going to be highly variable and I wouldn't use what an agent or the seller tells you as the cost of dwelling policies have increased substantially over the past few years due to rising new construction costs. 

Your deed holder entity should be listed as additional insured under the Builders insurance policies and deed holder should also be listed as additional insured under sub contractor’s policies.

I have the rental properties insured with a variety of lenders and no issues with putting all of them under the umbrella policy.

So our PITI on the home is $4,020/mo.Keep as rental- Market comps suggest a wide rental range - $3,800-$5,000+.

Is this because you had a PM with insurance for this kind of thing or was this a clause in your individual building insurance policy?

Most focus on rate and amount of cash to close but bad loan administration or bad loan administration policies may cause the project to be far more capital intensive if viewed beyond day one of funding.

That being said there are those that are willing to accept buying in an appreciating area where the rent only covers the mortgage (PITI).

I've contacted 8 insurance companies/brokers and no one offers policies (issue being the subleasing).

Eg, i have a friend/client who determines it based on income vs PITI.

At purchase the rents covered ~60% of piti.