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?

Then when you sell, use the same title company and update the policy.  

Do a "hold open" so you can just update the policy and pay only the difference when you sell.If you can reduce your money costs, that improves the results.  

It may cover the damage from the backup.Dig out that policy book that came with your renewal.

I have received discount for multiple properties.If you are getting insurance for 5 properties, I would get one policy that covers all 5.Travis FranzoyWhite Glove Inspections, [email protected] FotyBenchmark Insurance Group of Texas1111 North Loop West Ste 730Houston, TX 77008Office: 281.569.4353Fax: 281.569.4379Cell: 832.375.4008Email: [email protected]: www.benchmarkbroker.com

Yes, I simply asked my lenders what their policy was. 

Check with your title company ot your state to see if they'll charge transfer taxes.Many insurance companies charge higher premiums for properties in LLC, writing commercial policies instead of residential, so there's another costs.And using a Quit Claim Deed is worst way to transfer title. 

I have a no real estate discussion policy with Co workers.

They also have a reasonable cancellation policy if we are not happy.