That means I can ask my insurance to pay me the higher Actual Cash Value instead of the Dwelling A Coverage?   

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

About 5 years ago one of the sellers we bought a multi family from told us about a company that has a lot of landlords like us and we coshare insurance coverage.

California owners, should we increase our coverage, which should result in higher premiums?  

It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

I also helped my mother get 2 rentals to help supplement her retirement, mistake #1b.

Many likely have coverage for their mortgage balance or from many years ago.

How they could be more intertwined and supplement each other. 

You protect your assets by buying a landlord insurance policy, which comes with dwelling plus liability coverage. 

I would also recommend increasing your liability coverage to at least $2M.