SQL 2012 :: Cluster Errors - No Auto Fail Over?

My environment is a 64 bit Windows Server 2012 Standard edition that is running SQL Server 2012 SP1 Standard Edition (64 bit) which has an Active Passive Cluster set up and I unfortunately had no involvement in this cluster build. The person who did is no longer with the company and is not responsive to questions.

This morning this following errors popped up:

Event ID: 1230 - Cluster resource 'Databases' (resource type 'Physical Disk', DLL 'clusres.dll') did not respond to a request in a timely fashion. Cluster health detection will attempt to automatically recover by terminating the Resource Hosting Subsystem (RHS) process running this resource. This may affect other resources hosted in the same RHS process. The resources will then be restarted.

The suspect resource 'Databases' will be marked to run in an isolated RHS process to avoid impacting multiple resources in the event that this resource failure occurs again. Please ensure services, applications, or underlying infrastructure (such as storage or networking) associated with the suspect resource is functioning properly.

Event ID: 1146 - The cluster Resource Hosting Subsystem (RHS) stopped unexpectedly. An attempt will be made to restart it. This is usually associated with recovery of a crashed or deadlocked resource. Please determine which resource and resource DLL is causing the issue and verify it is functioning properly.

When I saw these errors, I brought the "Databases", "Logs", and "Quorom" disks back online and all was well. I then proceeded to check Application and System Logs noticing there where some VMWare/SAN errors that caused the CPU spike resulting in the Cluster errors.

Regarding the questions, why didn't a failover occur and What can I do to mitigate this process are now what I am focusing on. Researching the above errors, I discovered that you could a policy based what happens in a situation like occurred this morning. You can set policies at the Role level, "Server" level, and at the disk level.

The Role Policy seems to be a little less involved, screenshot RoleProperties.png show these. I assume these are defaults. The server name properties are set to the following screenshot, Servername_Properties_Policy.png. This seems to be correct to me, but there is where I am lacking. I think this means that if it fails at this level all associated resources, disks, etc will failover to node 2.Now where I think the issue is, the third screenshot, Database_Properties_Policy.png. There is no policy set to for situation where a disk resource fails. Which I believe is what happened this morning. Some questions:

1. Do I need to set this similar to what is in the ServerName screenshot?
2. What happens if I check the box for "If restart is unsuccessful, fail over all resources in the role"? Will this only fail over this one disk? If so, it doesn't seem like that would be ideal. Would it fail over at the Role level and move over all associated resources?

I am also not sure what time limits I should set for Period restarts, maximum restarts, delay between restarts, etc...