I've called my insurance company but wanted to confirm if the seller had any responsibility to disclose the flooding basement issues that could not have been discovered during the inspection.

Should I contact firm selling property or contact owner first? 

Then there is errors and omissions insurance and that depends on your brokerage.  

Maybe even your title insurance from the purchase?

Expense are quite low: $2000 year taxes, $600 insurance, $700 street lights, $3000 vacancy/lost rent, $1000 upgrading UTL & gravel/pavement per year = $7,300/year expenses.

I’ve never run into an insurance company who’s inspection would turn up a specific panel.

Is there a contract we should use to insure he moves when he says he will?

We want to get title insurance and told him that we would get our own title company for the closing.

If, however, I'm able to have the seller pay for my 1st year's mortgage taxes and insurance, I should be in the clear.

Obviously there will be a difference in cost to do the plumbing for a casual dining restaurant and an insurance office