@Mark Ferguson has the wise policy of not offering over 80% of current value (so, don't sell him yours). 

etc. and if you use the bank's title co. they will skip these and exclude them in the B section exclusions on your title policy.

Working with park owner is out, I tried to go that route when he informed me of their no rental policy, he's not a very understanding guy.

Never let the tenants dictate policy!

As of now, good insurance policy + a strong umbrella policy should be enough.....

Plus the title ins company appears to be willing to write the policy without a problem... 

I would suggest buying a policy now(be sure to shop local independent agents) and do a cancel/rewrite in 4-6 months when fire season is low.  

I currently have an umbrella policy.

Some advice:Hacking a house you lease or have an option on doesn't give you the authority to make improvements, you may have building code issues and the owner or contractor will need to pull permits.It was mentioned you do that at your own financial risk.Since a Realtor is involved, they may very well advise (and rightly so) for the owner not to allow improvements made from a handyman investor, they will be concerned about the quality of work and so will any lender and appraiser.Contact the insurance agent, most policies allow small improvements to be covered along with liability (not workmen's comp) but generally materials on site will not be covered.

I'm going for an Actual Cash Value policy instead of Replacement Cost.1) Should I get the loss of rent option?