What type of insurance do I need for my business and will that cover a house once I have it under contract or will I need an additional policy for that property?

Owning a rental can provide tax benefits, and you should aim to keep good records to maximize your tax benefits. 

When we got our original policy for our rental policy the agent said it was the best "Cadillac" of policies.

I am now in the process of the cash out refi process and ready to go after the next one.Unfortunately, I used up a lot of my funds on the first and don't have enough to cover another cash purchase in the area I buy.I market like a wholesaler but I intend to keep the properties I am aiming for myself due to the knowledge I am gaining in this particular area I focus on.So to keep my itchy finger at bay, I have started to study other areas surrounding me to start some true wholesale marketing to sell to other investors.I read and study all I can but it is no where close to adventure of dealing with a physical property.

It is the policy of many managing brokers to not be party to such deals because they are muddy and the sellers can get mad when they find out that someone made money on the deal.

Whether you agree with it or not, the big first time home buyer aimed program is now a 1% down conforming loan

I have a basic homeowners policy on my rentals but no liability.

The only thing preventing you from marketing your option is the specific MLS policies that usually require authorization (and agency) from the titled owner who has power of sale.  

Also, if this is a buy a hold I would suggest looking into an Umbrella Policy. 

Shop around your insurance policy, raise deductibles, review coverage with a good agent for locating cost savings.