Just make sure they have insurance and you should be fine. 

Suddenly, my Insurance company (who already binded my policy on closing) is starting to at concerned and is asking A LOT of question such as who will manage the property?

If you finance the property you must purchase flood insurance, rarely or not doesn't matter if it's in the zone. 

You need to talk to your insurance agent about finding the right liability policy and umbrella policy.

It will make your property more competitive and if your tenants do start a fire then the rental insurance should hopefully cover it.

Going to get together a pamphlet so I can put on a couple doors and not just single out the home owner I am targeting.

It just seems that finding the actual homeowners is more difficult as a majority of the properties for sale are listed under a realtor on behalf of the owner.

Can I then get it insured?

Location: IndianapolisPurchase price: $125kClosing: $1,200Reno: $78kProjected Reno time: 3 monthsHolding costs: insurance $350 (3 months), taxes ($150), utilities ($500)All in costs on projected timeline: $205,200ARV: $260kIf I BRRRR:Rent: $1,500PM: $150New Assessed value for tax: $450/month (2%)Please help!

They need to carry basic hazard insurance while the builder carries the liability.