It's probably safe to say that every extra layer will add to the costs but each layer will allow you to sleep better a night. 

One other note, regarding the title of the post....we do have an umbrella policy in place as a layer of protection for the flips and other BRRR we did.

@Justin Wall Thanks, Demo took about 3 weeks because the kitchen had three layers of flooring.

As a real estate broker I've done several of these, including for myself and the added layer of protection is worthwhile.

@David Edwards, You already have a mortgage and insurance I assume.Those give you 2 layers of protection already.

(It has a layer of lead paint underneath that but the latex paint is generally in good condition, so only a tiny fraction of the lead on the exterior is exposed.)

All the profits pass through up to my holding LLC and profits expenses as much as possible in each layer to limit taxes.

All of these things are vital parts of the screening report. 

It's also vital that your boots on the ground person inspect progress on the project every 3 days or so. 

It never ceases to amaze me how come so many go to the effort of getting a great income, and great credit score, but forget the most vital ingredient that Lenders might look at: their savings record!