Is there a type of  landlord insurance that will offer dwelleing protection, liability coverage and, premises medical protection etc. to a landlord living in the house with tenants that rent by the room?  

If both tenants have policies with $500,000 in Liability coverage there is $1,000,000 total potentially available for a claim.  

In my opinion an Owner's title policy is only invalidated in cases of fraud or mistake in its issuance, otherwise it continues on under its terms and conditions until coverage is terminated as provided in the policy. 

It depends on your net worth, but I typically recommend people start in their personal name as they get better financing rates and get an umbrella insurance policy with a good liability coverage. 

What specific item coverage on the policy should be increased or decreased to have the best coverage?

I have 1 house  am just buying to get insured and may be willing to convert other properties for coverage. 

Just make sure you have good insurance/coverage for that property.

Does that include Wind coverage?

Plus, if I get sued for everything I own, beyond the limits of my insurance coverage, I'd lose my share of this apartment building, along with everything else.

Also, be sure you have proper liability coverage for whatever you are doing, and worker's comp if you are paying "helpers".