The Insured asked for coverage under his title policy, and I denied liability because the policy had exceptions for survey matters and parties in possession. 

I would keep the security deposit the same and if you don't already have Renter's insurance with the Landlord as additionally insured coverage, require it now.

First and foremost you are buying life insurance to fill a need left by your passing so coverage amount is more important that policy type.Am I happy for owning whole life policies?

When a property is unoccupied for a period of time usually around 60 days your insurance carrier deems that as a vacant building and will lower the coverage on that building substantially. 

Each roommate would pay, say $50/month extra, to get the coverage.

Although this wouldn't necessarily cash flow since I would still have a payment, so I would supplement this with something else.

Realtor has been wonderful to get us insurance referals but we are about to lose the deal with post Ian flood coverage underwriting (in COBRA zone) being tumultuous to say the least.

Since this is a rehabbing thread, then costs associated with a flip are:Purchase amount, closing costs (which include but are not limited to escrow fees, title fees, recording costs, appraisal fees, loan fees, notary fees, insurance, inspection fees, etc), rehab/construction costs, holding costs (which include but are not limited to property taxes, insurance, utilities, maintenance, loan interest and principle, etc), and finally resale costs which include, but not limited to agent fees, escrow fees, title fees, notary fees, supplemental taxes, recording fees, transfer taxes, seller credits to buyer, repairs agreed to by both parties, etc.

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

Can you even get enhanced coverage on commercial?