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Matt,Speaking toward the insurance piece, your insurance premiums are going to depend on several different factors such fire protection class code, roof age, square footage, age of dwelling, etc.

But the mortgage holder gets notified and they will usually pay the taxes to protect their position. 

PUBLIC SERVICE ANNOUNCEMENT:I've been live-in flipping for a long time, so I should know better. 

All you do is get some legal protection as it's not in your name but tax benefits are zero.

If you don't establish the LLC correctly, or if you don't know how to conduct business through it in the right manner, then you might not be protected.

Hopefully the terms of the lease were outlined clearly, providing you protection.

This may not be a primary avenue, but it still has the potential to pay off in the end.The key is to get yourself out in the public.

Liability insurance is cheap and it can go a long way towards protecting the financial standing of you and/or your business. 

Talk to a good lawyer and CPA who work with real estate investors and understand the regulation.The final publication of the regulation should be posted in the Federal Registry soon.