Insurance for sure wouldn’t cover you.Just a thought and I could be completely wrong!

Also, be sure to notify your insurance company that while you are still living on the property, you also have tenants. 

I'm scared of how much my insurance will go up after the LA fires but there is a cap with CA regulations and also being dropped. 

- Controlling costs for payroll processing, unemployment charges, workman's comp and liability insurance- Coordinating ServiceTech & tenant schedules for appointments--- There are several industry vendors that focus on just this!

With insurance rates going up, best to find areas with the lowest operating cost.

To avoid similar rip offs in the future, the investor needs to bear responsibility for vetting any investment offering they're contemplating, or if not just leave your money in government guaranteed investments (like FDIC insured bank accounts).  

(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Insurance companies are always looking for MTR that are furnished like ours  never stays vacant more than a week.

Regarding insurance adding additional umbrella insurance is great idea.