Shifting your focus to out-of-state markets like Texas and Ohio can be a good strategy.

Insurance company now refuses to share their part of the cost.

And lowest flood/weather risks, insurance, etc? 

We each hold a 50% interest in the LLC.The values of each house are approximately the same, and there are no loans or outstanding debts.He wants to cash out so we thought a good strategy might be for us to sell one of the houses, and let him take all of the proceeds, and for me to take full ownership of the other one.Essentially, I am looking to swap my half interest in one of the houses for his half interest and the other one.

What is your exit strategy?

I was thinking it more as a lability if something would happen in the house and maybe my insurance would not cover it?? 

Also, you might want to consider about how the higher rate fits with your long-term investment strategy even though eliminating PMI and having no fees are nice perks. 

What would be your exit strategy A,B, and C?

The insured guys are always priced way higher, so it's worth it for me to buy insurance and get the cheaper labor.

(They used to ask for a title but I think I just showed insurance card last time.