Early on, I spoke with our insurance company and our policy did not cover the tenant’s moving expenses or temporary housing.

But as a matter of policy, I just tell everyone that actually applied (that I didn't pick) that I rented the apartment to "another qualified candidate".

If we determine that your dwelling should not be occupied because of damage or risk to property, health, or safety, we may, at our option, terminate this lease. 

As you mentioned, having a couple of rental properties as a safety net can provide steady passive income, especially in times of uncertainty or if you decide to slow down in the future.

Our first step after posting a 3 day without a response is to do a safety check.

This carrier essentially underwrites a package deal tailored to your business, bundling all your policies under a single umbrella, which could include General liability, Umbrella protection, and (obviously) property. 

FHA has the appraiser check inspect the house for health/safety and to make sure there is good life on the roof and systems. 2.

Pick their brain.Lastly, I'd make sure their insurance policy names you as an additional insured.

Adding a liability policy can provide up to $1M in coverage.

You will need special Lessor policy.