The unpaid lease may lead to a claim against the estate of the decedent but it’s not a title issue, IMO. 

They claim they are religious (he is a youth pastor) and don’t smoke (but they look like the do) and image wise are tatted from head to toe and don’t come off like they say. 

You can make whatever offer you want to make based on your math and MAO, but don't lie them by falsely claiming that their property is worth less than X dollars in a market.

I believe that under a standard title insurance policy, building code matters, zoning and other governmental restriction on the use of the property are excluded from coverage so unless you purchased an extended form title policy there probably is no coverage, but it never hurts to submit a claim. 

Tenant continually claims “hardship” in court and judge adds additional time for eviction5.

So a sponsor that's great for one investor will probably be terrible for another (and vice versa).I'm a conservative investor, so when I invest in real-estate I prefer sponsors that have at least one full real-estate cycle of experience, little to no money lost, low leverage, and high skin in the game.And there is a multi-family operator that has multiple real estate cycles of experience (decades) and it's track record claims no money lost in that time.

I understand your point, but many people do not realize that the reason for the increase in insurance premiums is due to fraudulent claims.

Your post is confusing though because you claim to be the seller but then mention "accepted an offer and recently notified the sellers agent of my intention".

I am currently in market for best rehab insurance that is resonable and reliable incase of any claims.

A prospective renter would have to spend a few minutes rifling through her stuff to find the money and then leave her room in the condition she claims.