Losing $800 monthly is going to KILL you if you don't adjust.  

I've had similar experiences with insurance companies inspecting my rental properties after purchase and making specific demands like repairs or adjusting deductibles based on their findings.

But ultimately you'll need to adjust the information for your local opportunities. 

I've had to issue several adjustments after the fact. 

I've only had to do 1 and it was several thousand.....I would take a real hard look at your numbers and re-adjust your offer accordingly.

My initial rate back in June was 6.99% although it's adjustable and has gone up since of course. 

That determination can only be made by an licensed adjuster for the Insurance company.  

He wanted the appraisal to be high for a loan.The county had a much higher valuation.He went with the appraisal and his charm.They accepted the appraised value and adjusted the tax bill.

Family First Credit Union can give you a 80% LTV loan with a 7 year adjustable rate mortgage for something like that.

I’m on the board of a small camp in Crofton, NE (near Yankton SD) (~120 beds, 80k budget) and we have had insurance policy adjustments in policy and costs for last 4-5 yrs.