I do believe house hacking is the way to go with little money since you qualify for FHA but it all depends on your risk tolerance. 

Zero issues.

You have zero, zilch, nada recourse.

We told them, our policy is not an invitation to pay on the 4th, yet they always wait until the last minute.

Maybe just get an umbrella policy for now?

If he isn't on the board, he has zero control.

@Blake Hrabal - it will all come down to your debt-to-income (DTI) ratio and whatever DTI level your current lender will tolerate. 

I have seen bogus paper work I called the insurance company found out they let the policy expire.Making them get a permit !!

Also let them know that late payment and non payments will no longer be tolerated.

The only thing I can think of is the policy was written on Actual Cash Value (ACV) and they are trying to back into the ACV of the building by taking the Land value from the Market Value.Can you give me more info on how the $30,000 loss to the land happened.