Liability insurance to cover claims or lawsuits resulting from bodily injury/property damage to others caused by an accident on my property2.

Good thing I discovered BP by accident. 

You should add an amount to cover this as a part of the project cost unless you will count it as a part of your investment in the project but just think what if you take long to finish the project, encounter costs overruns on unexpected expense items and you are forced to go longer without any kind of money to take care of living expenses?

J is a experienced flipper that literally wrote a book on how to estimate costs and he had a ton of unexpected issues and costs on that project. 

I just backed out of a contract yesterday due to the unexpected cost and work that showed up from my due diligence inspection.  

I started this way by accident.

Inspectors do not look behind the walls.There is a large percentage of first time flippers that go bankrupt always for the same reason, unexpected large expenses and way underestimating the costs associated with renovation work.Novices don't know what they don't know.

I typically go after mis-priced REOs that are underpriced perhaps by accident or lack of knowledge by the listing agent on the unit, and that allows me to offer list price or higher and lock the unit under contract. underbidding in current market for REOs usually doesn't result in success for me within first 30 days of a listing. good luck.

Same as if you leave early around 3 p.m. or later around 8 then you skip the high times unless an accident on the freeway. 

I do, personally, err on the side of cash-flow because that's more regular, dependent, can cover unexpected expenses, and if you have to drop rates 10% you still likely cash-flow (just less).