Our insurer is progressively adopting a policy that they will not cover water damage  caused by water heaters of 12 years of age or older.Still, the alarms work and I have avoided damage because of them.

As an insurance policy for this transaction.

Explain your strategy, honestly is the best policy.

Anyone who could possibly interact with your residents should be informed of your company’s fair housing policy and asked to abide by fair housing laws.

@Aaron Harren you should have a set policy and process.

An umbrella policy would be purchased.2) The contract is signed by my mother or father as the sole proprietor. 

Since these minor matters will be special exceptions on the final owners title insurance policy, the buyer is self-insuring them by closing.

You do not need an LLC for one property that has a mortgage on it.The mortgage is a layer of protection,  then insurance,  you can add an umbrella policy for a 3rd layer.Just maintain your property and you shouldn't have anyone one suing you in the first place.

I'm trying to find an insurance company that can at least provide a commercial landlord insurance policy for the fourplex, and as a bonus I would like it if they also had a commercial umbrella policy that would supplement the commercial landlord policy.

I would just carry a healthy umbrella policy for a single property.