Consideration is required, but we are a non-disclosure state, so that language you quoted is pretty standard. 

$25K is not enough, in my opinion, to insure a solid reserve fund.

Purchase price: $125,000 (assuming offer is accepted)Down payment: $25,000 (20%)Financing: 30 yr @ 5% = $540 /moInitial rehab: $5,000Closing cost: $2,0001st yr Insurance: $1440Taxes: $120 /moInsurance: $120 /moVacancy: $150 /mo (8%)Maint/Cap-Ex: $270 /mo (15%)TOTAL EXPENSES: $1200Rent: $450 /unitTOTAL INCOME: $1800Cashflow: $600 /moCash on Cash: 21.5%Here is a link to the listing if it may provide more insight:Quadplex ListingThe unit is located on a decent street in a very small town (<10,000).

I would additionally have enough to cover 6 months of mortgage payments (including tax and insurance).   

Additionally since insurance costs are born by all policy holders is it fare to allow any person to qualify for insurance when the likely hood is that their home will be repeatedly damaged or destroyed in the future.

Also I was able to get homeowners insurance to cover the outside of my section of the building in case something happens. 

But I keep hearing people telling me not to rent out a property with a swimming pool because of insurance/liability issues.If I intend to insure it fully, am I still gonna run into problems?

He recommends to purchase more liability insurance."

You are paying them a monthly fee & insurance so they are more opt to consider you pay them to hang your license while learning the ropes.  

Hey BPCurious to hear what companies people have their rental property insurance through in NYC and what the rates are.