A formal partnership would take a ton of work to unravel.Also, from the insurance side, it's just not clean from a coverage stand point like @Manolo D. references.

Especially with income loss coverage.

I've had good luck with the appliance and HVAC coverage.  

Tenant acknowledges that this letter constitutes notice by Landlord to Tenant as required by the Truth-in-Renting Act pursuant to N.J.S.A. 46:8-50.During the term of this Lease, Tenant, at its sole cost and expense, shall obtain and maintain flood insurance with respect to its furniture, fixtures, equipment and other personal property located in the Premises in an amount not less than the maximum insurance coverage available for contents pursuant to the National Flood Insurance Program; it being understood that Landlord shall have no obligation to obtain flood insurance with respect to Tenant’s furniture, fixtures, equipment and other personal property, and Landlord shall have no liability or responsibility with respect thereto.　

I believed insurance brokers can access a database on a per property basis to find out about past claims and even insurance coverage?

The problem is they currently have a favorable position  (58% LTV), great debt service coverage (~2.1), and the amortization remaining is 12 years.  

It is a rental so should I go for cheaper rather than more comprehensive coverage?

I think what you have listed is a good comprehensive list of the traditional ways of financing a purchase like this.

- 25k medical- 35k fair rental value- 20k other structures- 2000 deductibleare these the right coverage items/values?

Thank you for the coherent and comprehensive breakdown