We just have completed our renovation and added a beautiful AADU on the first floor of our split-level house in Seattle, Washington.Now we are in the process of refinancing and renting out the unit downstairs.We are currently living in the unit upstairs.My question is, which insurance type would be appropriate for our situation?

The building has a stone foundation that can be accessed from a crawl space that is below the entire lower level unit.

@MJ Kim there is still opportunity in the Columbus market...we have enormous transition across entire zip codes...if you are willing to assume some level of risk, can connect with a great team, and undertake a renovation and stabilization effort, you can do well.

The question becomes, what level of umbrella coverage (Policies are sold in $1,000,000 increments) are you comfortable with and whether or not the added protection of the LLC is worth the cost at that point. 

Disney just recently announced they're moving over 2,000 high-level employees from CA to this area. 

Good purchase price for an entry level rental in Denver.

They may also ask about your experience level or contingent funds, etc.If you know you have a solid personal financial history, then I would go after the off-market in parallel. 

I'd try to find out if the seller is just "leveling" the house or is actually addressing the cause of the settlement problem.

There are a lot of levels of a BRRRR deal.

They do a very VERY high level credit overview to get you an approval letter then when it comes down to it, during the transaction, the underwriting is much more intense and they fail a lot of loans if the client is too close to the wire.