Your current policy could deny any claims.

Remember: you can deny someone for any reason, as long as you are not discriminating against them because they belong to a protected class.

This way the tenant has some skin in the game and if it fails due to wear and tear the warranty company picks up the cost, if it fails due to abuse the tenant must pick up the cost.

They deny their mistake and refuse to help with the repair cost.

But I have been told by 3 separate lenders that I was denied due to those same late payments on my student loans 5 years ago.

They cannot deny your request.

I did a little research on it and heard they are asking questions that they cannot legally ask or denying things they cannot.

@Michael ErnstI have heard tenants will abuse heating, cooling and water use if it is included in rent.

A property that shares a wall with another property where the 2nd property has a door to the roof of the property for sell (could require a drone to see).As the auction nears, the normal houses get removed as the owner gets current on their taxes.As the auction is a couple days away, I use my contacts to run preliminary title checks on a few of the best candidates remaining (I do not want to abuse the relationship). 

Be sure your agent knows exactly how often it is used and vacant to avoid any bad experiences with claims being denied for incorrect coverage.