Now the tenant may have a legitimate personal injury claim and more.3) "Citing Renters Insurance declined coverage"- So, tenant has Renters Insurance?

I would look at their policies and make sure both the coverage and deductibles meet your needs. 

Absolutely.If a landlord is listed as additional insured (rather than additional interest) they cannot make a claim against one another's liability policy for damages - it could completely jeopardize the coverage they think they're making it easier to get. 

Unfortunately, getting the insurer to extend coverage beyond the bathroom may be an uphill battle.

I can go out to my "surplus" carriers and get coverage. 

When there is a sum of money in the bank, I’d rather buy another property than pay for fire damage, and I’m happier with the insurance coverage.  

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?

These platforms are affordable and offer comprehensive reports (credit, background, eviction history) without you having to handle sensitive information directly.Verify Employment and Landlord History: Your plan to request pay stubs and a landlord reference is solid.

If pool in ground is not an option or not in your budget, a quality above ground one could be a good route to go.I would definitely make sure you have an appropriate coverage.

Quote from @Peter Firehock: Introduction:Well you've certainly put together a long and comprehensive analysis.