If you are like me, you carry high deductible....which you will pay if they are uninsured, or you have to submit on your policy and let the carrier subrogate back to theirs, if they have any property damage liability coverage to go after. 

The rules have changed a bit since I became familar with them,  but it used to mean one unit per 1600sf of lot space with height and lot coverage / floor area ratio limits.   

It will involve a loan agreement or promissory note that specifies the terms of the loan (amount, duration, interest, renewal, payments, debt coverage, loan to value ratio, etc).

Significant insurance coverage now and llc later if you are going to finance.

I am planning on having standard home insurance with a general liability coverage of 1mil.

From a tax perspective, the contracts and setup could impact how much you pay.A good Independent Agent who is familiar with construction can help with the decision on what coverage you need, what can be piggy backed on the builders insurance, and how to make sure that coverage does not lapse.

He got us policies with Travelers, and the quotes were much better while the coverage was higher to boot.

Cap rates, debt coverage ratios, ROI, NOI, these are my decision masters.

Also you may want to consult with a property manager or attorney to ensure your lease is comprehensive.

I am trying to acquire a personal umbrella coverage.