The main difference between a homeowners policy and a dwelling fire (landlord policy) is the contents.

Your accessory dwelling unit’s additional value at current market rate will be added to the existing home’s value.

Hi Jonathan, We would need to know more details, but you need check with local zoning board to see if you can convert into a multi family dwelling.

@Darsh PatelDon’t waste your time with people who don’t physically have the voucher during the showing and it must match the property dwelling .

The idea with your zoning currently is to allow only 1 dwelling unit per 5000 sq ft, with the few exceptions that Brian mentioned above, and with all of the proper setbacks. 

Hey Eric,  I would suggest getting a quote to add the rental as a second location on your existing home insurance policy (be sure to disclose that this home is a rented dwelling).   

If I were to acquire the property, what would I have do to make this a legitimate (and safe) dwelling without putting myself at risk?

I was able to get "Rental Dwelling Insurance" from State Farm that lists the LLC as the insured/Holder...

Once you have your Cert of Occupancy, you will need to replace the policy with either a vacant dwelling policy or a Homeowners depending on how quickly it will be occupied.

Matt,Speaking toward the insurance piece, your insurance premiums are going to depend on several different factors such fire protection class code, roof age, square footage, age of dwelling, etc.