Many lenders want to see insurance in place as part of their "underwriting"Are all hard money lenders participating in this chicken vs egg challenge or are there some that use common sense and have adjusted their practices to accommodate the various laws throughout the nation?

Youll need to adjust to the new reality.

I've had similar experiences with insurance companies inspecting my rental properties after purchase and making specific demands like repairs or adjusting deductibles based on their findings.

Losing $800 monthly is going to KILL you if you don't adjust.  

But ultimately you'll need to adjust the information for your local opportunities. 

I like it because it does appear to be a one stop shop for what I use it for, but its gonna take some time to adjust to the workflow. 

I've had to issue several adjustments after the fact. 

My initial rate back in June was 6.99% although it's adjustable and has gone up since of course. 

That determination can only be made by an licensed adjuster for the Insurance company.  

He wanted the appraisal to be high for a loan.The county had a much higher valuation.He went with the appraisal and his charm.They accepted the appraised value and adjusted the tax bill.