Websites claim ocean levels have risen almost 10" in the last 30 years, yet Gore and Obama are still buying beachfront property, boats are still pulling into the same docks, etc.

If an insurance company finds out that a claim is linked to an unpermitted conversion, they can deny the whole thing.

You aren't going to take someone to small claims court for damaged paint or anything, and if a major loss occurs the tenants are almost never collectable anyways. 

Many times they will claim it's wonderful and then try to hide their worst deals by only showing completed deals.

are your getting traveling nurses, business professionals, displaced families, insurance claims etc?

Each software I look into claims to have all three attributes (property, bookkeeping, project).

We’ve never rented it so it cannot be claimed as a rental in the sale.

The house is unlivable, and now I’m dealing with the headache of insurance claims, finding contractors, and ensuring my tenants have a place to stay.

Checking with the 2 lenders who I have preqalified with, one seems to think it's no problem, the other is still checking with Title Dept. to find out, but feels it likely is an issue since the Lender would not be covered in a potential claim. 

They have it setup so if there is any "transfer" of the property deed that they are able to claim the loan balance due.