This puts their clients and themselves at risk.Coverage for your rental properties needs to be written on a commercial form, underwritten as a tenant occupied dwelling and at least $1,000,000 in liability.

Rather than continuing to dwell on it, it sounds like opening a 529 for now might be best.

Our property has already capped out its density (maximum 14 du/ac, and our property is capable of fitting 2.7 dwelling units per the density standards), and a tiny house on wheels is considered an RV technically, and city code doesn't permit people to live in RVs.Even if tiny houses turn out to be a no-go for this piece of land, I'm sure we'll find an economically productive use for it.

Instead of the worth of your home being tied directly and solely to your dwelling could you spread out some of the risk by it being tied to a larger community and potentially thousands of dwellings all over the county and potentially world?

Some urban multi family dwelling developments are doing this; but I think it needs to become more common.- Provide a small grocery area where staples can be purchase easily.

Property:Property is a piece of land that allows for a primary dwelling + ADU.  

I renovate to create a bullet proof, durable dwelling and always include a few basic frills (tiled tub surround...refinished hardwood floors...mini blinds on the first floor)I always remove obsolete items like gravity furnaces (love used 80% efficient units and used gas water heaters...I'd drive a hundred miles to pickup a truckload at the right price) and definitely remove cast iron tubs with those silly ring shower curtains for new tubs with a shower head. 

Umbrella insurance (beyond the liability insurance for each rental dwelling) is far less.

I said hmmmmmm......From then on I was hooked on the concept of making money off my dwelling arrangements.

Sure does seem with the country getting more and more crowded, a large portion of basements rented out as residences continue to not have a C of O (as a separate dwelling unit), What I've usually seen is owners rent their basement (if no C of O as separate dwelling) for storage or the like, cause eventually a residential tenant who defaults will find out (as easily as googling) that the space they were renting as an 'APARTMENT' wasn't even a residential dwelling to begin with then query it with the department of building which inspects for code violations / unpermitted additions etc.Luckily even if someone rented their basement without it having a C of O as a separate dwelling/apartment, a holdover can be evicted just the same except the established norm seems to be 'evict me and i'll report u' thus its important to be sure the unit is legal to avoid the code-violations-cited eviction aftermath.