When we invest in a senior lien, we always get some sort of forced place insurance if vacant, or until we can get on the homeowners policy. 

What does your written policy say about holding out until you get the best applicant? 

3- Hazard/liability Insurance companies will likely take your money for the premiums for a policy written as a multi-family property, but then if tenants in the unpermitted space were to cause damage or someone got hurt, that the insurance company would refuse to pay because the unit was unpermitted or not up to code.

They don't have policies or procedures in place to deal with problems.

Any recommendations on insurance or warranty policies that would cover individual furnace units in a 28-unit apartment building?  

Right after you close on something get an insurance policy that will protect you if there is a loss.  

Alway get an insurance policy right after you close on a new property that will protect if there is a non-natural loss.  

After you close, right after, get an insurance policy that will protect you if there is a loss.  

Then maintain a consistent policy on your approvals.

As for the reissue rate, I have not personally asked them because most of my deals are wholesale deals, and of those many are distressed sellers, and I think to qualify for reissue rate the sellers must have own the property for X amount of years 10+ and have had a recent title policy issue on the property within a certain amount of recent years within 10 I deal with a lot of heirship properties so a lot of my deals don't qualify.