Then you could use the rental payments to supplement your regular income.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Also, the LLC does NOT eliminate any personal liability on the next loan application which is a popular selling point by ill informed DSCR brokers on this board (but they rarely mention the higher financing costs that come with financing in a LLC) IMO, proper insurance coverage is a better choice. 

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Talk to your preferred lenders about whether they see a cash our re-fi as being approved with the same standards as an investment, i.e. loan to value, debt coverage ratio, etc.

My insurance doesn’t allow smoking and if I don’t address a problem when I discover it I could be at risk of a policy cancellation or non-coverage if the smoking were to set the building on fire.

-------------------------------------------I am involved in a construction project which requires a Builder’s Risk policy/coverage…something off the beaten track for most people.

I have used two companies, and while they are both more expensive than regular insurance, they have extra coverage that is specific to STRs.  

We have a handful of properties in the cape coral area that we're trying to find cheaper insurance coverage for.

The cheapest is not the best, you don't want to lack coverage and be left with a high deductible.