- Why didn't the contractor's insurance cover this?

Yes, I require renters insurance.

Claims" are an insurance matter.

New construction properties can qualify for significant insurance discounts, but otherwise, I generally expect insurance in this area to run a little over 1% of the property’s value if it’s in decent condition.Feel free to DM me if you’d like a good insurance contact to shop around for a better rate.

Even with renovation costs and insurance costs the fix n flips are still making money.  

Not one member has ever said an LLC saved them when a standard insurance policy.

As far as the insurance claims, I've had many. 

Property taxes are 650, insurance 160, outsourced property management takes 10% of the rent, and another 10% of the rent is set aside each month for future repairs. 3750 x 0.8 = 3000. $3000 profit, minus about $2300 in mortgage, property taxes and insurance leaves about $700 cashflow, when I move out.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

.: Quote from @Andrew Steffens: Curious what is the purchase price and taxes/insurance/HOA?