Make sure you have policies and procedures in place, I have learned from experience that anyone can find a good deal when aquiring them.

But your liability policy only covers $1,000,000.

In general, I'm generally trying to wrap my head around a personal policy for reserves.  

That's what written policies do...free you up from people who don't or are unwilling to follow your rules.Yes, Ben, it's well worth the time to have a meeting of the minds with only you present and re-examine how you add maximum perceived value, how you don't, and what ballast needs to be jettisoned.

There usually must be a listing agreement with the actual owner of record, in most MLS systems, and per Broker policies. 

@Brandon Turner Most renter's policies cover water damage due to broken pipes, overflow, etc., but like homeowner's policies, flood coverage will need to be purchased separately...My $0.02...

Further, if this does happen, the lender is going to very quickly slap the property with a force-placed policy.  

Your lender   simply obtains a lender's title policy, they have no issue with prior rights of redemption as they are insured, so yes, you can obtain a conventional loan. :)

This appears to be more a unpublished policy for maximizing the return on the sale rather than accept a below list offer and risk losing out on someone else willing to pay more.The older smaller sold comps really have no bearing on supporting your strike price to the bank since they are not alike in any way.

They use policies developed in the 60s and 70s where people did not do home improvements.So they focus on things like the neighborhood, the square footage, the age, and days on the market.