Typically Construction insurance aka Builders Risk I am assuming you are referring to is adequate in some instances.

But seriously, one thing I notice is that the 100 point system does not appear to adequately represent the disparity between one highly reputable person such as Will Barnard and one mediocre contributor such as myself.

I think we have adequately shown this statement above about the "only" passive investments to be untrue.

How many machines do you think are adequate for 16 units?

You do need to be adequately insured or it will be ammunition used against you to try and pierce the LLC, but ideally, at least for smaller RE Investors, no single LLC should hold enough assets to warrant an umbrella policy.

I don't have a problem with PM's marking up costs as they have to find reliable vendors, negotiate special rates, schedule with the tenants for work, and verify that the vendor adequately performed the work.

Does the Pm really have insurance to cover him and you adequately?

While you may be able to adequately conduct the search yourself it is tedious.  

So far I haven't found one that can do the job adequately, but I've got one of the 4 that looks like they may work out. 

The toilet man. is simply concerned that adequate space between toilet and flange is maintained and the plumbers likely gave suggestion easiest for you to do and easiest for them to explain.