Additional Interest" just means you will be notified if the policy ever lapses, is changed, or is canceled.

@Nicholas Mazdra gotcha, so did you let your TX license lapse?

If Tenant fails to procure the required insurance, allows such insurance to be cancelled or to lapse, or fails to timely provide the required certificates of insurance, the same shall be a Default of this Lease.I'm not sure what to enter as an amount for the policy coverage. 

You may even sell underwater depending on time lapse since purchase-- good luck with that.

Countrywide allowed all the policies to lapse, then purchased Balboa Homeowners Insurance instead.

I chose the price range as I would still be able to cover the costs in the event there is a lapse in renters. 

Meet back with your lawyer and clarify that if you allow your private policy to lapse that the LLC will be able to start its own new policy post-assignment of the quit claim. 

You have the right to evict them based upon their breach of lease, but it might not be in your best interest to do so even though you had that right.in 90% of the mortgages or Trust deeds out there in circulation .. there are components of the document that are titledEVENT of DEFAULT and then they are listed.for instance:1. let fire insurance lapse 2. commit waste on the property3. do not pay your property tax's  4.

I was a registered GC for a period of time, but let it lapse.  

If you don't keep it well funded there's a possibility in can lapse.