I would be curious what the pet policy was when they rented initially.

You also need to contact your insurance agent and change over to a landlord policy.  

Instead, I plan to invest the same amount into permanent Life Insurance policies (high premium low death benefit).

@Curtis Towers you could ask what a non-owner occupied policy will cost and cover,  let that drive  your decision.

David,the most common form used for a rented 1-4 family dwelling is a Dwelling/Fire policy. 

Tell them it is not your business policy and that's the end of the matter.

I have Ohio rentals and I'm fine with having adequate landlord policies on each property.

Would you recommend an umbrella policy too?

Either your thoughts on the market value are off, they are hurting for money (therefore check the quality closely of these units in process), or there's little chance of getting these at $200k lower than market value unless these folks are smoking something.Last thought:  you'll want to talk to an insurance broker who does commercial policies in my opinion. 

( Heard of city policy requiring physical presence during check-in)Any downside to listing on both Vrbo and AirBnb?