If the money is not held according to local landlord tenant law and/or was was spent (either intentionally or unintentionally), that act would be treated as an exclusion no different than under any other insurance policy.

A good investor agent that is plugged in with local wholesalers, is prospecting, and marketing on their own will have plenty of discounted off market opportunities that will have less eyeballs on them then the MLS.

This deal is not exclusive by any means, just trying to help people get deals done. 

They are listed at market value, but I made a discounted offer to purchase a few of them.- I prioritize building strong, professional relationships with my buyers by taking the time to understand their needs and goals.

Hence, our concerns are discounted.  

As a broker in a wholesale market, I "buy" a loan from a lender at a discount and mark it up for my profit.

I love home depot because i get military discount there!

Also, most Umbrella Policies only pay out if your underlying policy pays out, and the underlying policy will do everything they can to find an exclusion or that you were negligent (which you probably were) in the cause of action to get out of paying the claim.

But i heard that there's scammers who prey on new listing discounts to try to take advantage of new hosts.. is this something I should be concerned about?

Besides all the benefits of real estate, I like the control I have, and I like the discounts on the purchase price, I'm able to get.