Obviously meet all safety requirements.

Not an expert here but my Brother is a heavy equipment operator in Northern CA and did a lot of the fire clean up when those fires happened and he mentioned contractor might need hazard waste removal license..

If you buy in a vacation area there really is no safety net other than desirability/location…I guess just don’t pay up too much.  

They focus on safety issues, such as wood rot, water damage, and structural integrity of balconies and decks.

This provides you with a safety net for any unexpected expenses during the rehab process while also potentially allowing you to secure higher leverage on the purchase price.

Health and safety inspections don't seem to care much about zoning or permitting issues.

With many advisers there is safety.  

But ...The first thing I observed was the replacement cost portion of the quote, was, IMO, less than what it will actually cost to demolish the remains of the existing structure, pay for any hazardous waste removal following a catastrophic loss, and actually pay to replace the property in the event of a total loss, even though I used the quote feature to increase the replacement cost value by 20% (the maximum it would allow).

It is a safety issue. 

This is all a safety net for landlords to not have any liability from a tenant if they are providing false information.