On the rental front; what if a tenant dies due to your negligence? 

They face willful negligence lawsuits.So I doubt anyone is going to simply walk away from this.But I agree it could be an opportunity for a new investor.Except reputation is in tatters,and any new management will need to first surmount that marketing disaster.

I recorded a video of our entry that shows all of this in evidence.The question now is: is this considered Destruction of Property either Willful or through Gross Negligence?

I plan to own the property about 4 months... what it will take to repair it and sell it.My very experience REO realtor is telling me that the title is obviously clear since they did the search and I can get away without buying title insurance if I don't want to.Her very experienced title company owning husband advised me to get the title insurance because there is a very large discount on the policy when i sell the house if the time between this sale and the next is short.Does anyone out there every buy houses without title insurance when the risk has been characterized and determined to be negligable?

Your home owner's policy would cover the damage after deductible.That's not true, "Personal liability renters insurance policies may cover bodily injury and property damage to others caused by your actions or negligence." - NationwideIf the renters insurance does not have the liability component, then yes it only covers their belonging, however if it does have a liability component, then it does cover other damages where the insured is found guilty or liability of damages, such as a fire, or water damage. 

The cost is generally negligible and the process is ensuring the you're putting out a safe and quality product for your end buyers as well as protecting your contractors, etc.

I see that a lot on Bigger Pockets, and it makes no sense whatsoever.Regardless of insurance, you can be sued for negligence, or maintaining a nuisance, or whatever.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

"Massachusetts' lead paint law creates strict liability, which means, in a nutshell, you need not be negligent to be liable for damages.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.