Purchaser will obtain title & escrow closing services from:"Option 1: Seller's escrow closing & Title providerOption 2: Other Escrow closing & Title providerIf option 1 is selected seller pays for Owner's & Lender's title insurance policy, otherwise buyer pays 

Or is this an exclusion in all policies that a property is not covered if it has aluminum wiring?

@Tony Castronovo generally a private investor gets 1st lien on property (mortgage deed or deed of trust) a promissory note signed by borrower in which private investor states terms such as rate, term length ex. 12 mths possibly with option to renew, prepay or no prepay, points. and add private investor to insurance policy listed as "loss payee", along with a personal guarantee from borrower and have all docs recorded.Funds from private lender go into escrow at title company or placed with an attorney, closing docs with mortgage deed or deed of trust and promissory filed at courthouse signed and notarized.Private investor gets original promissory note and copy of mortgage deed or deed of trust and you get a lien for purchase price and rehab.Sell or refi after project complete, pay back private lender and keep what's left.Let me add there is no right or wrong way to do this as I have heard of many different arrangements but hopefully this gives you a general overview of the process.All the best!

When you do close on a improved property get an insurance policy that will protect you if there is a loss.  

Is there such a thing as a blanket policy vs having a separate policy for every property?

Only about 40 million (or 22.5 percent) of the 173 million households in the U.S. benefit from the mortgage interest deduction, according to the Tax Policy Center.

This was a policy decision made by the Legislature concerning the appropriate scope of the Guaranty Fund."

Look into Index Funds, ETF's, Crypto, REITS, whole life insurance policies, and whatever else you can for what resonates with you as to where to put your money. 

Cash to close includes down payment, all the lender's fees/points up front, prepaid interest until the end of the month, prepaid insurance (a vacant policy is at least 3x the cost of a homeowner's policy) depending on the lender's policy (i.e. prepaid for a few months, 6 months, 1 yr, etc), closing costs, and maybe some other miscellaneous costs on the HUD (e.g. if you're buying from a wholesaler and they wrote up the contract so that buyer pays all closing costs).Reserves for monthly payments.  

The insurance for a rental is different than a home owner's policy and usually a lot less as it doesn't cover contents (aside from appliances if they are yours).