However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

The above 4 items are just the largest of many errors in the appraisal but the common theme is that all the errors (minor and major, both substantive to the final value and not) indicate an inaccurate report based on out-dated information that leads to performing a grossly negligent assignment. 

One judge will find someone negligent when another may say that the person was reasonable enough.RE Brokers are paranoid, (and their attorneys get paid to devise policies) you would be too if you had a couple hundred "agents" running around doing business in your name, especially in sue happy areas.

That would seem to be negligible for most hosts booking between $100 - $200 a night.....?

Would that also work for other general messes that are clearly the result of gross negligence or malice? 

It can take me a bit longer to place a tenant with qualifications but that time period has not been negligible.  

Continuing to pay someone who is fault and not doing their job just further incentivizes that individual to continue with their negligent behavior.Cut bait, eat the loss, and find another contractor.

Any accidents due to negligence will fall back on the property owner whos name on the title.

Anticipating 2 month turnaround on rehab so interest costs should be negligible, even on the higher rates associated with HELOC and improvement loan. 

The middle segments see negligible adjustment.