@Casey Charkowick I think you need to do some more research to narrow down your expected rents a bit more - the range $2400 to $3000 is pretty wide, and makes a big difference.By my estimation, it's about a 2% cash on cash return if the rents are $2400/mo, and about 5.5% if they're $3000/mo, with debt service coverage ratios of about 1.18 (bad) and 1.48 (very good), respectively.If the realistic expected rent is $2400 I would not do this deal.

The bank pays $200/ month for insurance with $700k in coverage.

It's one of the most comprehensive on wholesaling that I can recall. 

I am pricing out insurance companies right now and I’m swimming in coverage line items.

When in doubt, most people who aren't experienced with this type of thing will find the local REALTOR association contract to be the most comprehensive as well as fairest to both parties.Myself personally I would use a simple one pager with terms favoring ME.

Redfin is a great resource for finding comps, if they are in your area, and Manorville, NY has Redfin coverage.

Beyond that most policies provide some level of liability coverage if a tenant's guest or anyone else is injured due to the tenant's negligence and some may even provide coverage if the tenant damages your property.Regardless, I mandate in my leases that tenants carry renters insurance not only for their protection but for MINE.

Rewey  delineated ... if your buying notes were you have Joan and Bob living in the house.. those are the most work ... we tend to only look for notes that are back by two sources of repayment  rental income and the owner of the property.. then we look for 2 to 3X rent coverage over note payment.. and that sets up for a very solid secure note.. now granted these are going to have lower yields but VERY consistent and you don't have to deal with the drama of NPN.. which to me is a business not an investment.. but to each their own right.

Although my parents had insurance coverage that protected against wind & flood damage, the insurance company attributed the damage to something outside of their coverage. 

If you got the mortgage in your personal name, you can get really good insurance coverage.