I think each person should make those decisions based on their own understanding of the rules and risk tolerance.

Just makes zero sense to me.

Maybe they quoted me a vacant policy?

If it’s zero, or close to zero, your best bet may be a “master lease “ for 2 years; if your successful and can show 2 years of tax returns, you may have a shot at attracting a equity investor to provide the equity capital needed for a loan.

There is a water exclusion in my policy, but the bold part is where I have some hope. 

Here's a little guidance:Ask a local insurance broker to give you a ballpark estimate on a landlord policy (not a homeowners policy).

All you do is get some legal protection as it's not in your name but tax benefits are zero.

You have ZERO ZERO ZERO reason to be worried about keeping the deposit as long as you document every single action they took against your property.

Liability CoverageThe liability section of insurance is fairly similar across the entire country.  100k is the minimum required on a policy, 300k is recommended, and 500k is preferred. 

and why new construction for infill only happens in areas were you can sell homes for closer to 200k no way you are going to rebuild in an area were not matter the age the home will only be worth 60 to 80.. better to take your insurance money and move on.. those lots have zero value..