The following items are covered under building coverage as long as they are connected to a power source and/or installed in their functioning location:Sump pumpsWell water tanks and pumps, cisterns and the water in themOil tanks and the oil in them, natural gas tanks and the gas in themPumps and/or tanks used in conjunction with solar energyFurnaces, hot water heaters, air conditioners and heat pumpsElectrical junction and circuit breaker boxes and required utility connectionsFoundation elementsStairways, staircases, elevators and dumbwaitersUnpainted dry wall and ceilings, including fiberglass insulationCleanupThe following items are covered under contents coverage:Clothes washers and dryersFood freezers and the food in themFlood insurance does not cover basement improvements or items not necessary to make the home safe, sanitary and functional -- such as carpeting, finished walls, paint, floors, ceilings, furniture or personal belongings that may be kept in the basement.

I am sharing this as I think its time to keep some powder dry.

Insurance isn't cut and dry either. 

(Unit above us has always been for sale since we moved in, but there's people walking around up there daily.)Anyways, last Friday HOA came and demolitioned kitchen saying they are replacing pipes and rotted wood between upstairs and downstairs units.

Roof, plumbing, dry rot, HVAC all need inspection.

Differentiating increases in premiums between and investment property and a primary residence with a tenant in it seems like a trivial disparity for an insurance provider to ring you dry in the name of pet damage. 

I know folks who have bought brand new houses, and in the first year they've dealt with serious issues like significant foundation settling and cracking, significant flooding (basement was built too close to the water table), and premature wood frame rot due to poor design/construction.... 

Second incident was his guest getting into it over the washer and dry which is free to wash.

They saw the exterior and from photos think they see rotting wood on the windows - which would be required to repair to close. 

My concern is what you echo in your post - that as interest rates rise, purchasing power decreases, liquidity dries up a bit, and values go down.