If a covered peril (cause of loss) such as fire damages the house they will need to pay for other accommodations until they can get back into the house.

Excellent ideas here, @Lucas Carl  I use a similar strategy for my LTRs in order to reduce the impending stress caused by tenants with the wrong mentality.Reading your post brought to mind a question I've never considered before:  are vacation rentals subject to Fair Housing Laws in the same way that LTRs are?  

Am I a good landlord because I didn't anticipate that a pandemic would cause the local, state, and federal governments to close most businesses and at the same time rewrite long standing laws to remove most protections of my property while at the same time requiring that all costs associated with maintaining that property, including taxes, continue to be paid?

However, the thing to keep in mind is that if you impose the fee, and she refuses to pay it, all you can do is allow it to accrue along with the late fees that are caused by the ongoing balance, and then serve eviction for nonpayment once the moratorium is lifted.

Because the banks give you a big chunk of needed money if you are going to live there... one time that you live in Switzerland the bank might cause problems (I have Portuguese friends that told to the bank that they were going to live in the acquired house and after rent it without problem, because the bank has no way to proof if you live there or not).

I worry that a sponsor will include an investor (a BOZO) that will cause problems for the entire deal. 

I would call a banker cause it will be pretty specific to your credit score, dti, w-2, assets etc. etc. 

What did you learn from those books, taken together with other information, caused you to arrive at your ideas? 

A wise investor / friend of mine once said if his first offer doesn't cause him to blush, he knows he offered too much.  

The potential high LTV risk is correct but as long as you can make payments I am not sure if it causes a real issue.