Also I feel that previous owner realtor inspector and HoA the ones should held responsible for this.

Just a tip - make sure you don't just look at the current property taxes. 

I have a guy who has been here since July, but I renew his short term stay for two weeks at a time, every two weeks.

Let’s swap some stories and tips in the comments.

The way it comes across is that his insurance payout escapes taxation, as long as it's below basis/purchase price. 

@Nathan Gesner  will do, thanks for your response!

Quote from @Chandler Williams: Thank you for your response Jerryll, I really appreciate the help.

It was hosted by Phill Groves and his wife.

Your cousin should contact the lender to discuss his options.If he rents it out, he must report rental income and expenses (e.g., mortgage interest, taxes, repairs, depreciation) on Schedule E starting when the property is placed in service.

Meghan, Thanks for the response!