But you will increase costs in regards to insurance or lending..You still risk losing the property to any liability that happens at the property or in your personal life.

Some are free and some have an annual fee.

By the way, how much does this cost?

You can literally find answers to all of your questions within the confines of this site.If you have any questions or just want to connect please feel free to reach out. 

For example,Late RentInsufficient FundsUtility ReconnectionReissue CheckA/C Clean ViolationPest ControlRenewalMove-Out AdministrationUnlock RequestKey RequestFailure to Return KeyPilot LightingGrilling ViolationGarbage ViolationClogged Drain / Tub / ToiletWindow ScreenHurricane Shutter ViolationSmoking ViolationLease Amendment AmendmentPet ApplicationUnauthorized PetGuest ViolationUnauthorized OccupantInspection (due to tenant violation)Yard RemediationPool RemediationSmart Home Device TamperExterior Maintenance ViolationParking ViolationCommunity Amenity ViolationMarketing (tenant early termination)Notice (due to tenant violation) PreparationNotice DeliveryLien ViolationSubleaseAssociation ViolationEviction (not including attorney’s fees and eviction costs)Rent Verification10.

House hacking it for a year or so, could allow you to build up extra funds for a future down payment, furnishings, and other costs. 

Because for the financial impact of a project to be less than 20k is bad once you wrap up all costs. 

If you have any other questions, feel free to reach out! 

Can anyone recommend me a great insurance company that's also headache free when it comes to filing claims?

Feel free to reach out to the contact info in my signature or DM me her on BiggerPockets.