Their home (owned or rented) had to have been destroyed or severely damaged. 

To put it simply, and without sharing too many family details, I am helping my aunt, who is a victim of senior abuse by her kids, fix and flip her home after it was cosmetically destroyed and left vacant for many months.

And they have to trust the investor to make their mortgage payment, and trust the tenant buyer not to destroy their home.

Hire a public insurance adjuster to negotiate your claim with the insurance company, they will probably be able to get you more than you can personally get from the insurance co. i have not gone through this but this is something that i have read about. you are also better off with replacement cost in your policy, this is equal to what it would cost to fix it vs actual cost, which takes into the account the depreciated value of what was destroyed.

Is it possible to get renter's insurance to have some coverage over the home in the case it's destroyed by fire, flood etc.

Such properties can be profitable, but it takes a special set of skills to manage the situations that will come up and potentially destroy your cash flow and/or the property.The strategy does not so much matter, rather than having a good team in place such as a very involved property manager with experience in class C/D properties. 

Deferred maintenance is often a simple/cheap (relatively) fix, but neglect can be the cause of major systems failures or issues, which can destroy your returns, so be sure to have a very thorough inspection.

They become this fiend, this villain that could destroy you and is probably the hardest phase of all the phases.It is during the MOVING PHASE, that you must be cool, have all your wits about you and be prepared, yet still be cordial so as not to enrage the monster that seems to be lurking in your Tenant during the MOVING PHASE (as there is NO ANTIDOTE to calm the savage beast once it takes form).

When we filled in pools, you were required to destroy the bottom so that it wouldn't trap water and remove the walls of the pool altogether.

On the first purchase we made, they took a lot of section 8 tenants to inflate the rents and we ultimately decided some of those tenants were destroying the property so we lowered the rent to attract the right tenants and once we had the bad ones out, we slowly moved the rents back up.