We offered a reduced price via closing costs credits, and additional favorable stipulations.

Despite never filing any claims, we just received notice that our liability coverages have been cut in half while at the same time, the premium for the reduced coverages is still 15%+ over what we paid last year based on the original higher coverages.Can anyone refer a contact for getting apartment insurance on a small apartment building located in Northern California?

If you notify us that you wish to make a partial early repayment, you must make the payment (a) within 28 days beginning with the day following the day on which notice was received by us that you wished to do this; or (b) on or before any later date stated in your notice to us.Any partial early repayment of your loan will reduce the amount on which we charge interest from the day after we receive your payment.

Many people if they'd be frugal & reduce risks & have patience (over time) would be guaranteed financial success. 

Additionally, the decreased value of a Lender’s servicing portfolio reduces the Lender’s overall net worth.

The chances of being locked out for an existing tenant are reduced as they no longer worry about keys, which typically costs them a fee if they have to be let in to their own unit.

They are willing to reduce the mortgage payments to interest only payments for 6 months.  

The numbers I'm seeing seem redonkulous.Any advice on how to reduce cost and potential alternatives would be greatly appreciated!

Get a reduced price and convert the lower unit into an office or self storage (you could offer to the tenants a 10x10 for $100 a month if the space exists)?

You can reduce your risk by looking at the historical increases, and extrapolate.There are a lot of things to think about!