It's similar to saying that you should always put down 20% to avoid mortgage insurance—sometimes it’s smarter to put down 5% and keep more cash available for other opportunities.

You will always have taxes and insurance and maintenance and capex anyway, so how much better will you sleep because you eliminated one of those expenses?

We also assist with tenant placement for insurance claims that we cannot fill in our own properties as well as beginning to cohost for some MTRs as well.

Insurance payout is not a taxable event.

@Jason Porto6-12 Months of Expenses: Many investors aim to have 6–12 months of property expenses (mortgage, insurance, utilities, and maintenance) saved. 

There are also home buyers who want to look in the area before they buy, home sellers who sold and have no place to go and want to look, contract workers in the area, construction workers, insurance displacement, and more.

A good way to avoid this in this future is to use a vendor worksheet/package that request the pertinent contact information along with a document request for the filed out W-9, copy of business license, Worker comp and liability insurance certificates.

OR are you doing quiet title because title company wont insure without it ?

For Guarantee I think in the way David your thinking about Guarantee the only one out there is FDIC insured deposits with the full faith and credit of the US Gov. 

- Insurance policies (some may not cover rent by room)- Friction among tenants regarding common spaces