As the lender, you should call the insurance company at closing to confirm this coverage.If he has a simple homeowners policy, like what we all have on our personal residences, he and you are likely not covered and it is possible the insurance company has what they need to deny the claim.

that's how I felt about our first home purchase for our primary residence. 

My primary residence has a unique feature in that it has come with a 20x40ft double-wide manufactured home in the backyard.Previous owner was using it as a shop but it has wood panel walls and beat to hell 50 year old carpet. 

The answer is turnover costs (different than repairs, vacancy, etc). 60k houses rent to C/C+ residents.

I do not yet have my own primary residence (I still live at home), but I would like to get one soon.

You'll forever more be able to use it as short-term rental, but you won't be able to use or sell it as a residence.

Scouting out a few potential residents I'm interested in purchasing to rehab for resale.

Scouting out a few potential residents I'm interested in purchasing to rehab for resale.

It's a condition of our agreements with them that they stay enrolled with @Paul Ritter & MyCreditTeam.com in their credit enhancement. 

I currently own two properties, one of which is my primary residence, and the other barely breaking even.