The policy may have to be placed in the Excess Market if you just choose to insure the Liability. 

The money in the “investment account” then grows and the policy owner can access these funds via a policy loan.  

Make sure that you get a builder's risk policy. 4.

Property: 2868 Ralston Rd Mobile, AL 36608Purchase Price: $20,500 (personal cash)Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total ARV: $100,000 (comps support higher but staying conservative)Rental: $850 (Market likely supports $900+ but staying conservative)Construction Insurance: Plans in place to take out a construction loanfor the rehab $400 for a 3-month termTenant Occupancy Insurance: Plans in place to secure a policy at $900 per yearRefinance: I have been pre-qualified by quicken loans for a 75%cash-out refinance at ~5% interestTotal kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month) COC ROI after refinance: 12%

I read in another forum that some insurance carriers offer policies with roof exclusions.

I changed some of our policies to help avoid and mitigate losses, such as not allowing section 8, nor DSS.

Instead, put an umbrella insurance policy on the property.

The attorney makes his money from selling the title policy not a charge like that.  

That contractors never start work for a landlord without cash upfront, as per their usual policy?

yes it used to be on the same floor. normally you will need MDE tracking number ,insurance policy number as well.