Another issue, any insured loss arising prior to closing didn't seem to allow for the receipt of insurance proceeds and continue with the contract as an option.

When a situation like yours arises we normally suggest you speak to the listing broker.

I don't think we will see that kind of volatility but we are definitely in a rising interest rate environment and this could continue for a while. 

I understand that with multiple people learning together, interesting questions and scenarios can arise that just wouldn't necessarily spawn when you're learning on your own.However, there are wonderful online courses now that actually take time to give you real life examples and scenarios of why a topic is important to learn.

And hold on to all your paperwork.So, what measures should the "Subject To" investor use to ensure that such troubles do not arise down the road?

I double checked the exclusion in my Commercial General Liability policy (General Construction), here is what it says,Exclusion – Engineers, Architects or Surveyors Professional Liability“This insurance does not apply to “bodily injury”, “property damage” or ”personal and advertising injury” arising out of the rendering of or failure to render any professional services by you or any engineer, architect, or surveyor who is either employed by you or performing work on your behalf in such capacity.”Also real property other than work performed is not covered or warranted, etc.Seems pretty clear to me that I am not covered to design and build, so we have a licensed and insured architect we treat as a contractor having them list us as an insured on their policy and get a certificate from them, and we need a builder’s risk policy.

You need liability insurance to protect yourself from damages that may arise at your rental property (trip and falls) and you need to cover the structure itself (rebuild costs).

We always have to say that to make sure misunderstandings do not arise.  

Towns are always cleaning up these little oddities as the need arises. 

Finally make sure your contract address things that arise out of scope of work and change orders.