Today was the last straw when my electrician was in to do some work and reported there is now a cat in the apartment (no pet policy).

They should be listing you as a lender on the insurance policy.

Are there a slew of "what if", sure but you can just as easily talk to your insurance agent and increase those portions of your policy that you have concerns are not enough.

If it were me, I would consider purchasing a 3M umbrella insurance policy and I'd just keep it in my name.

I have my cabin in an LLC and also have a large umbrella policy.

Without a tax return you will not be able to go with a bank, as most have that requirement written into the loan policy.

In CA, title companies have a policy of waiting a year before they insure.  

It is also my policy to list the property with the agent that brought me the deal if I don't keep it as a rental.Now when they ran into a piece of crap they didn't want to list as it was and the owner didn't intend to make it marketable they called me instead of tossing that lead into the round file.

Then when you get the title policy it has one exception for the existing mortgage.

Do you run into problems with adding the 2nd mortgage holder as a loss payee on the insurance policy?