However if you had done a warranty deed (or a special warranty deed if you still have a mortgage on it) instead, your LLC has a claim against you for the issue on the title, and you in turn can go back to your initial title insurance to fix it.Some title insurance will allow to transfer the coverage to an LLC that you own 100%, but not all of them do or they may require an additional fee.

Do you have any projections for what will happen with the insurance market for this year, or is it even possible to project? 

but careful planning and documentation are essential""...making sure that your wife understands what she needs to do to document her hours and activities."

Does anyone else do it like this and who do you use for liability insurance?

LLC is pass through income so have your bookeeper or CPA take care of everything at the end of the year for your tax documents.

My partner and I keep an excel spreadsheet of rent, our purchases, utilities, taxes, insurance, and money spent on contractors.

This ensures a clean transition of ownership and responsibility for insurance purposes.

Even if they had renters insurance, it comes with a $500 - $1,000 deductible just like your insurance.

Moves risk to be financially covered by insurance hypothetically.

Quote from @Nicholas Dillon: I read somewhere that you can request to have your mortgage insurance dropped once your Loan to Value reaches 80%.