Seth,There are two parts to this, Property coverage & Liability coverage.

Coverage seems adequate with this policy but I am struggling to fully understand all the different coverages.

What insurance coverage do you recommend for this scenario?

Cheaper and will provide a more comprehensive umbrella.

You want at least a 30% margin above costs and the NOI needs to be enough to pay the debt service after stabilization and then some.If the project looks feasible from a financial standpoint the next step is to check with the city or county planning and zoning department to get an idea if your concept will work, if you can build what you would like to build and what is required for all approvals including site plan, building permits, proffers, water/sewer tap fees, bonding requirements, inspections, setbacks, lot coverages, parking requirements, height restrictions, C/O process and time frame for all approvals.You also need to check with the utility companies and get an idea of availability and cost estimates from them for water, sewer, power, gas, cable, installation and connection requirements, tap fees, hookup charges, transformer location and relocation, power line and power pole relocation issues.

Most companies will rewrite your coverage to a Dwelling/Fire form for the rented situation.

@Raja Panyala A short lapse in coverage (less than 30 days) is generally easy to rewrite.

*Redfin provides data to part of the US, but it coverage is extensive enough for many cases

There is no coverage for physical loss such as vandalism, theft, fire, wind, hail, and so on.

A rental Dwelling policy covers damage to the real property, liability coverage and it MAY cover YOUR "Loss of Rents".