When the market turns south, they'll start to lose their shirts and run back to the safety of their W-2 job or their core business.

I deluded myself into thinking that the car insurance companies were doing us a solid by discounting our policies.

Between both reserves, they should hopefully allow a sufficient safety net.

So I have a few questions;- Should I entertain exceptions, a 'pets on approval' policy - based on breed, behavior, etc?

Since she has no lease and you are the rightful heirs, you also have the right and ability to enter premises and ensure its safety, etc (again, talk to attorney on this).I have heard of others having some "rough types" move in to a few of the rooms to make it very uncomfortable on the trespasser in hopes to get them out.

Don't forget to factor that some licensed contractors will refuse to take work in these areas due to safety concerns. 

Some will argue for liability, but that is why you have insurance and umbrella policies.

So they have different procedures and policies that I had to adjust to.

A lot of those new inspection laws were put in place for construction safety, all in response to building collapsing's and high reports of property damage.Mainly dealing with development teardowns and excavations but if you see that as a con, every state or city is going to have one whether its high property taxes, friendly tenant laws, no appreciation, red tape.. etc.

Turns out I can get a much better insurance policy and coverage if it was a corporate policy.