Usually they have several code violations which are significant safety issues- the biggest usually being a lack of fire protection between units. 

I've recently rented out the property but have not updated my Homeowner's Insurance policy yet.

Karen, you need a vacant house policy- not widely offered.  

I am beginning to explore the land trust with LLC as beneficiary possibility, otherwise a commercial/portfolio loan will be necessary with less favorable terms and rates compared to conventional residential financing.If I could do it over again and planned to only have one or two properties I would simply invest in a good umbrella insurance policy and call it a day.

A banks internal policy might be lower, but if you use a broker they are going to be using multiple banks, therefore you shouldnt run into an issue til you hit 10.Also consider if you are married, and you each qualify for the mortgages independently, you could conceivably get up to 20 between the 2 of you.

In which case, all of the above holds true and you obviously need to make sure you have free and clear title and an owner's title commitment* and policy. 

There are few units for sale but in a community properties which consist of association fees and policies.

I don't know if there is any kind of education outreach that can be done to policy makers.  

Prior to the LLC I would be more concern with a nice Umbrella Insurance policy.

No safety glasses or dust masks.