I've gone to a NO PETS policy and still someone pulled this stunt. 

Add to that macroeconomic policy, globalization trends and politics, and you have a fun, and never ending quest trying to sort out all the variables!

But having invested in SF RE for over 10 years now, all I can say is thank you to all the quasi- socialist policies, the naked tenant pandering, and sometimes just plain sheer stupidity- thank you for creating this highly distorted (and often entertaining) clusterf*ck that has made me a multi millionaire. 

what's different for each policy?

There are specific policies for Vacant properties that may provide more coverage for the building than a regular policy once the vacancy provisions kick in. 

That paypal policy is for friends and family.  

We use outside managers to manage the property.Right now I am using an All State personal policy on the rental property with the LLC as additional insured and, in addition,  a personal umbrella policy to cover anything in excess to what is covered by the personal policy.

If we make a $2500 claim on a vacant property, it might be declined (or at lease raise a bunch of questions) and the premiums would be at risk to go up if we are lucky enough not to have the policies cancelled.

If the LLC is not an option then may I suggest you get a very good insurance policy and possibly an umbrella policy. 

Ideally the income is guaranteed and by an insurance policy not just a LTD management company that could be closed down leaving you in a tricky position.