I have had success getting coverage through Foster & Witmer insurance brokers. 

Does anyone have any suggestions for companies that specialize in MF coverage?

You might be correct that one heavily mortgaged property does not invite frivolous lawsuits, but one screwy but real case could trigger payments beyond your primary coverage, and then you pay with your own assets.

It sounds crazy, but the earthquake risk here is something that can influence the price of coverage.

They only care if the property is occupied, and personal liquidity/net worth/debt coverage ratio.To answer question four and even to help with the refi the more investors that are on a line of credit app, theoretically, the higher the LOC should be.

I really prefer the personal asset protection offered by the llc and don't really want to deal with the headache of umbrella insurance and all the exclusions to that policy, nor do I have any interest in fighting with an insurance company down the road if I ever need to use my coverage.

If you get into larger apartment properties banks may lend on pro-forma amounts as long as they can reach the DSCR of 1.25x (Debt Service Coverage Ratio).

We also have our umbrella coverage w Farmers.  

Doesn't Airbnb offer insurances and coverage in case the person staying there causes damage or a possible squater? 

Each independent agent can shop multiple companies to get you a good rate/coverage combination.