I agree that is weird and unnecessary just to collect rent, but at the same time the deed is a public document so I wouldn't be concerned about sending it.

Real estate is full of a lot of people with an ego, who feel like you always need to be growing your portfolio and they get crafty and expose themselves to unnecessary risk. 

And you do any transfer before getting a loan as that will be an unnecessary hurdle otherwise.Good luck!

Get a second job, cancel wasted unnecessary items like cell phones and cable TV.

They can do what I did: Join the military. serve your country (cuz you should, period) and treat you new-found VA loan eligibility as an additional, unnecessary gift from Uncle Sam.Then use it.

Long story but they were trying to force me to do something unnecessary that would've impacted me financially in a big way and would've caused me to waste a lot of time. 

You bring more responsibilities in your conduct when you personally manage the entity, if you were to take unnecessary risks, act contrary to what a prudent person might do or do things that intentionally caused harm to your entity or others, you can then be liable for your actions or lack of actions.

I've seen people propose this solution as a way to keep track of income and expenses for each property, but it's unnecessary.

Sure, for any landlord this is not an emergency to us because we have the knowledge and experience to know this, but landlords need to put their tenants in the landlords shoes and realize that the tenants are scare, don't know whether to poop or go blind and the tenants want to protect the landlord's property from unnecessary damage.

Sure, it happens.But to suggest that owners coverage is unnecessary when there is a lenders policy in effect is bad advice.