I have been hearing about the market in FL struggling due to insruance policy issues.

Meanwhile most who obsess over entity formation fail to carry proper insurance, work with unlicensed and uninsured contractors, fail to execute contracts, can't explain the difference between being listed as additional insured and certificate holder or request to be listed as additional insured on vendors insurance policies etc.

Yes, it is important to review the PM Agreement and its policies to ensure they align with your interests and protect you as their fiduciary.

They did not have to do that as they have no refund policy. 

The state the property is located in, homeowners' insurance policy, and whether you rented as an LLC or individual all make a difference.

When switching over insurance,do I provide the lender with a STR/Landlord policy or do I purchase regular home insurance to send to lender and STR/ Landlord policy for my protection.

Many landlords disagree with this policy but that is because they fear having to protect their investment.You have a lot of money tied up in your investment, always put yur needs first and reject any applicant that may place you at risk.

There are exceptions, but not many.My policies are explained to landlords when they hire us.

New Mexico governmental policies are historically unfriendly to businesses in general.  

Their policy changes including price increases, charging for every little thing as an "add-on", complicated GUI and the lack of fixes of known problems (posted by their "community" on a Facebook Group), and super slow ACH deposits (which take 10+ days!)