Since I'll be living in the building, I don't think a landlord/commercial policy would apply. 

What is your risk tolerance?

I have home owners insurance and an umbrella policy and I see that Airbnb provides insurance as well.

You will want a landlord dwelling fire policy and an umbrella policy to increase your liability!

Do not hold the unit for anybody...... if they want it that bad they are going to have to sign the lease, pay the deposit, first month rent etc etc etc, and just have to suck it up having 2 places rented at the same timeOnly other option, is a non-refundable deposit of one months rent.... so when they bail at the last minute, you aren't out that months rent.....Otherwise....no way...... why would you want to lose $$ to hold it for someone that has zero commitment to actually following up on their end of the deal?

Ever owner/landlord has their own priorities when dealing with tennat issues but that does not mean their policies are universally mandatory.I personally do not have ac and have managed to survive many days this summer with the heat and humidex well into the 90s.

The price and terms you are offering might not be the only reason that you are batting zero on your offers.

All payments on the two loans net out to zero.

NOT MUCH.. but it does keep from having call backs and if there is a water landing they know they have insurance.. at the end of 10 years our builder warranty is up.. and then on top of that I Pay 30k up front for a project policy that covers all the houses in that particular community for 10 years as well.. this is for 1 mil and basically its used to hire attorneys if we get sued for builder defect.so in essence on a new build we are paying on the 25 house communities we built the last two years total of 50 homes.. about 110k in insurance to cover us for 10 years.. the issue is the subs get sued first then the GC then me the developer  but subs being subs 6 years from now they are out of business or moved on so then its the GC's insurance then us.. 

To all my insurance agents, Real Estate Lawyers and Experts,General Liability Insurance and Builder Risk Policy are needed during a constructions.