The deductible is $1,500 and liability coverages, etc. are $2M total, $1M per incident.

Commercial lenders tend to focus on DSCR (debt service coverage ratio) more so than DTI.  

The NAR forms are usually very comprehensive and cover everything. 

I'm currently working with them on a hail damage claim and they've been a little slow but customer service and coverage options are good.

Insurance is really dependent on the property and type of coverage.  

There are many ways to work it depending on the amount of coverage you need. 

while down the road (once you own a number of properties and have considerable equity) it maybe worthwhile to look at an LLC, a lot of people when just starting out simply purchase a good umbrella policy for additional coverage and protection.  

Of course that is not likely, but it can be done.If you go the portfolio route and are willing to pay a much higher rate, then you can get DSC (debt service coverage) based loans.

Originally I had full intentions of creating an LLC as well as having umbrella coverage.

These questions are important because depending on your long term plans, you will want to have your asset protection plan--insurance, entity type, taxes, state of LLC...other things well beyond my scope--to align whether your targeting growth, multiple asset classes, simplicity, super cheap or super protected...etcIf you plan on growing beyond your current level I would highly suggest a commercial insurance policy--It will offer the ability to put these properties into a trust or LLC, will have more expansive coverage, (relatively unlimited) growth under a single policy or two and offer the easiest policy management in the long run.