This is why its important to conduct your business correctly and make sure your insurance is in order (along with  any vendors who perform services for you) because a good operator does not do things where insurance coverage is denied. 

With a tree falling on a roof there isn't much interpretation and should be an easy claim to file that wouldn't be denied.

You are exempt from the "source of income" protection though, which means you are allowed to deny an application just because they have a housing choice voucher, which would not be the case if you owned more than 4 units. 

These people throw up a website and think they are business owners, when in reality they are thieves, cheats, and abusers. thank you for your time.

This can result in someone abusing the system and overfunding loans that should not have been funded in the first place.

But I would just offer an egregious lease renewal, and if they deny it then great.

I have seen some lenders get all the way into underwriting and deny the loan due to the "risk" of the collateral versus total vested interest.

"Investor-friendly agent" is one of the most abused statements here on BP! 

(I do not know if she has a legit letter or not) Regardless, I understand FHA I can't deny her application based soley on the ESA, but if the one of the current tenant have allergy issue, can I deny then?

If they deny the rent, they will send you a letter asking if you will accept or deny the reduced amount.