Quote the insurance with limits and coverages you are comfortable with. 

New National lenders have come into the market offering a bit of a hybrid product, Debt Service Coverage Ratio loans (DSCR) however they require much more underwriting and time than a hard money loan.  

If you put the title of the condo into an LLC you need the insurance policy to have the LLC as the named insured.If you are worried about Liability, an umbrella policy may be a less expensive alternative to give more coverage. 

When the property manager knows there is a large group e.g. 10+ and or kids, he strongly suggests this coverage.  

As an owner-occupier, I was once given the advice that I could just get a regular policy, but in your shoes I would ask about an umbrella policy to give you additional coverage - especially with two other units and sources of liability. 

Insurance kicks in as long as you have proper coverage.

Tenants should have a renter insurance policy with $100,000 in liability coverage and they should list you as "Additional Insured" or "Additional Interest" on the policy.

I recommend asking about umbrella coverage, it's cheap and worth it for the amount of coverage you get. 

Tenants actually save money when using a shared meter, so there's plenty of room for error when calculating how to distribute the charges.That's very helpful and comprehensive, thank you for the response!

Andres,The first thing I would try is to get the policy number and company of the Plumbing Contactors General Liability coverage.