The named insured should be the LLC, with you as an additional insured.I don't believe that by itself it would create any company veil piercing, but I am sure that if attacked, that would be one of the factor used to attempt to prove the alter ego.I would be more concerned however that your insurance may refuse any coverage in case of catastrophic claim as they would raise that you did not disclose the proper ownership of the property and its associated risk, and as such defrauded them.I had no issue with my different insurances to change the named insured to the LLC without having to cancel the policy. 

Some of which may alter the terms of the loan.

@Kevin Lefeuvre it could permanently alter the way we do business.

The plumber delay altered that schedule so they understandably took another job to stay busy.

Knowing Who the seller is and Why they are selling could help you negotiate in the following ways: obtaining a reduced purchase priceobtaining seller financingprovide a lease-back optionoffer an equity stake in new development vs. cash at closeThere are countless ways that the terms and structure of a deal could be altered to get you to the finish line, and sure, it's possible that you could get a win-win deal for you and the seller without knowing their true why, but just like you should always make sure you know what you're buying, you should just as well know why they are selling.

Yes, speak with your attorney, but LLCs generally are designed to protect its owners from personal liability, but people (i.e. tenants, etc.) can try to claim your LLC is just your alter ego if you are a single-member LLC (piercing the corporate veil) so they can pursue you personally. 

Its not enough just to meet the criterion for an ADU though, as you also have to submit plans and receive permits for those additions/alterations. 

Unless otherwise specified, work does not include any changes or alterations from the drawings or specifications that may be required by any public body, utility, or inspector. 

You can dispute the possibility as much as you like - that will not alter the fact that this strategy is being used every day!

Marijuana is a little more mind altering than caffeine or Tylenol.