Therefore, it is the policy of this State that the people may obtain copies of their public records and public information free or at minimal cost unless otherwise specifically provided by law.”The Law states that public records "shall mean all documents, papers, letters, maps, books, photographs, films, sound recordings, magnetic or other tapes, electronic data-processing records, artifacts, or other documentary material, regardless of physical form or characteristics, made or received pursuant to law or ordinance in connection with the transaction of public business by any agency of North Carolina government or its subdivisions."

A landlord's policy of hazard insurance would be closer to $650 for me annually, not $2500.  

An umbrella liability policy should be part of that discussion.

I need a policy to cover basic business with errors and omissions and $500,000 worth of property (subject property).

Your tenants will soon learn your terms and your management style.You can establish a no-smoking policy at anytime with a MTM rental agreement. 

And a title insurance owner's policy is a MUST whenever purchasing property...especially in investing.

Contractors front the money for work, labor, and supply costs and expect a profit for the service and safety they ensure.That said, there are absolutely contractors out there that will take advantage of customers that do not understand what they want or how much it generally costs.

Private lenders and hard money lenders will need a lender's policy of title insurance and their money must be disclosed on purchase HUD at the time of purchase, so clearly you need to tell the seller that a loan is involved within your offer.  

Other than that can anyone think about any downside with having a liability only policy for rentals?

Lenders have more leeway, and thus their policies are what govern the transaction.