It was a leak, fix it replace the sheetrock and damage other items and move on Why would you file and insurance claim for such a small issue?

Even adding yourself as additional insured does.Making a claim as additional insured may cause you to be unable to recover anything.

Then he started to claim he was owed money under the assignment fee, but after reading the lease the only thing that was stated if we were to get a house or if we opted out, neither of which happened, so my question is how does he think he's entitled to anything when he didnt deliver a house to us and the lease was terminated by the owner???

Because they know you're unlikely to use it, and when you do they either won't cover your claim or they will charge you some kind of service fee that makes them whole.There are many other reasons why home warranties are bad.

This deduction is typically claimed on Schedule E of your tax return.Points Paid for Refinancing: If you paid points to refinance your rental property, you usually must deduct the points over the life of the loan.

Civil records clerk claims the only forms they have are landlord/tenant eviction based on non payment of rent and I need to google the form I need. 

* Do I need to have an LLC or S corp before claiming this property as an investment property? 

They will ask if you filed with the court, you say no, then they get going.What they will do is to get documentation of the actual claim from you and the amount then they will start sending mandatory letters out to them (once they located where they live).

If, as they claimed, they are not sure what the taxable amount is, then they should check box 2b and leave box 2a empty. 

Your mortgage is neither inter-bank, nor is it short term.Anyone claiming to be able to predict the future of mortgage rates with >60% accuracy, you should ask them why they aren't on Wall Street sipping champagne with Warren Buffett and netting one billion dollars per year.