Quote from @Edward Neuman: Long story short, I thought I was going to live in Grand Rapids long term so I bought a house for $450k and after some surprises and some impulsiveness I ended up spending $370k on renovations. 

Single family homeowners policies and single family landlord policies typically are similar in regards to premiums if everything else is the same such as coverage amount and roof age.

You should carry enough liability coverage to protect your assets in the event of a lawsuit even after defense costs.

@Boffill Yosleys How is it going with the mid-term rentals a year later?

Quote from @Waylon Bruce Moore: We normally have a system to furnish mid-term rentals but recently acquired a property that we were going to do LTR and now have decided to do MTR.

We’re definitely trying to make smart, long-term moves that work for both our family and our future investment goals.

So, don't suckThere is no benefit to a landlord in signing long-term leases, only downside. 

This is what's surprising me at beginning of the year.The Milwaukee insurance agent called me hey your dwelling coverage should be 600k !

The contractor's insurance is likely a general liability policy and would not afford any coverage to the building itself or materials to be used on site or in-transit.As for if the contractor doesn't perform, that would not be covered through insurance.

Prepayment penalties- usually 1-5 year terms.