The majority of this deal was financed with a business line of credit from a local bank, the rest was supplemented by cash on hand and a business credit card....that's right a credit card!

Who provides the best coverage and price will depend on a lot of factors:- Fire Protection at the location (hydrants or not, distance to fire station, etc.)- Condition of house and property (have the systems such as Roof, Plumbing, Heating, Electrical been updated) - claims history of the property- age of the buildingI would suggest seeking out an independent agent that can quote multiple markets.  

If they can not provided the coverage and do not represent multiple Insurance companies, look for an Independent Agent to quote this up for you. 

Insurance wise, depending on the severity of the damages, you may have loss of rents coverage.

Debt Coverage Ratio: target?

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

This is because it's VERY difficult and expensive for a PMC to get liability (mostly slip & falls) coverage on a property they have no ownership interest in.

Actual cash value (ACV coverage) is what I prefer as a lender versus RCV coverage.

Sure, but factor in that I take them to and from school every day, can't even claim them as dependents on my taxes, provide full medical, dental and vision coverage.. and they stay at my house overnight 50% of the time, and I'm probably paying too much.

What are the legal risks one should think about in order to decide if this is worth pursuing, and how can those risks be mitigated with insurance coverage?