I know it covers any damage my condos may cause and protects the banks from any losses due to damage.

Yup, and if you find something that warrants additional expertise, such as perhaps something requiring a foundation expert, you can certainly extend the contingency. 

I have a client that is in bankruptcy protection (ch. 11) because a lender failed to perform on a $33MM loan.Project is mixed use right on Ala Wai harbor in Honolulu.We have secured a $4MM Equity loan but because client is in such a precarious situation lender is charging high points and only giving him 2 months balloon maturity.

My brother and I had a buy/sell insurance agreement to protect in that type of instance.  

Also (disclaimer, I work for SimpliSafe), glad to hear that you are using SimpliSafe to protect your rehabs!

Hello-I just wanted to get some insight on what the best option is to protect personal assets from real estate investing.

I would like to have more protection under an LLC.

Not being a principal residence I don't think it's protected by homestead rules.If you buy, be very sure who's doing the foreclosureZ

The guru's taut LLCs for asset protection, but don't discuss other side-effects. 

Violation incurs not only penalties under the Property Code (return of all payments made by the buyer including monthly payments) but potential liability under the dreaded Deceptive Trade Practices – Consumer Protection Act (“DTPA”) which can involve treble damages plus attorney’s fees.