Ultimately, I understand the liability falls on the owner of the property; hence, my question around insurance.  

Here are the details for this 3,250 brick 4-plex:Replacement: $564k10% Rent Loss$1 Million liability$5k medical$5k personal property$5k deductiblePremium - $1,703/yr. ($142/mo.)Does this look reasonable, can I do better, and who might you recommend me reaching out to if so?

If you choose to accept separate payments (I would not) be sure to discuss the joint and several liability clause in your lease when you sign in. 

Since you lived there two years you might be able to sell with no tax liability on the profit.

Limited liability companies "LLC" can file as an S corporation, so LLC are kind of a grey area of the law.

What are the added liability issues?

Shore up your lease (attorney reviewed) and buy a lot more liability ins if you rent out a home with a pool.

And with no PG on the debt strip the GP has no liability other than their reputation if the deal goes south.

I was reading about the owner liability for snow removal and stumbled upon this interesting Synopsis of Michigan Premises Liability Law pdf. 

My hazard policy includes substantial liability coverage, so I'm wondering if I'll be causing myself more trouble than it's worth by transferring ownership to an LLC.