In rare cases, you might be over insured and the lowing of the coverage would be justified. 

I am interested in coverage in case the roof or HVAC system goes out in the first 1-2 years of ownership since it is near the top of my price range. 

Their usual coverage is lawn to street, most don't even paint your house how much more repair your foundation.

Rental - Commercial banks look for 1.2 debt coverage ratio.

Tell them it's a blanket loan and your borrower needs a title search on each property $$$$.I'm not saying don't seek qualified legal advice, just saying this is pretty slam dunk stuff at a title company and they can give you title coverage on your loan. :)

@Joshua Wileczek - You're missing a number of factors you need to take into consideration.Your monthly budget should include all of the following on top of mortgage, PMI, and taxes:Repairs - $160CapEx - $160Vacancy - $136Property Management - $160Insurance - Somewhere between 50 and 120 a month depending on your coverage and agent.In that regard  Here's how the numbers would break down Rent $ 1,700.00 Mortgage/Taxes/PMI $ -1,150.00 Repairs $ -160.00 CapEx $ -160.00 Vacancy $ -136.00 Property Management $ -160.00 Insurance $ -75.00 NOI - aka..cash flow $ -141.00Based on this math it doesn't look like a good investment to me..and is the reason why in spite of living in Southern New Jersey, I don't actually invest here :)

-Check your insurance coverage.

The agent will be able to easily add liability coverage for the rental until.

.*) Technically, this is essentially a comparative market analysis (CMA), but much more objective and comprehensive.

Your title insurance will "except out" this requirement (no coverage).