At the same time no matter how much excess insurance coverage you obtain, there will always be a policy exception for gross negligence and even negligence will likely be covered only under reservations of rights meaning the carrier can opt not to provide coverage. 

If you can concretly tie increased usage to that unit, I would give a notice that rent is increasing due to excessive use.

Unfortunately if we can’t sell we will loose all our investment.

I am in a syndication that for the first time I am concerned about loosing some of my investment.  

Yes, many times but then we cover rent until renovated and tenanted.Have we had an investor loose money on a deal?

Your HOA will likely keep increasing and because of the excessive heat, roofs get replaced more than in other areas and if the HOA is not super liquid, that will come back to you in the form of an assessment.

The 1920s in Florida was a time of excess, immense wealth, and precipitous collapse.

If there are excess losses, Citizens can surcharge all policyholders to help pay for the claims.If you have a long term rental, it is a viable and affordable option, but it should never be construed as the best option. 

Complicated rooflines, modern details that require a bunch of steel framing, excessively large great rooms, spa-like bathrooms, etc would push you into the $1,000-2,000 range.  

Whenever I read investor posts about unit count goals and utilizing section 8 rentals as the vehicle to scale a portfolio it loosely translates to buying real estate without paying attention to the fundamentals in the markets where they invest.