These are uncharted waters so no one really knows how it will play out in litigation. https://www.costar.com/article/247920446/coronavirus-losses-could-trigger-act-of-god-clauses-in-contracts-insurance-claims

It is not necessary until you have a threat of loss or lawsuit like previous people have commented.

You can further defer or shelter capital gains by:Never sell the property 1031 or “like-kind” exchange into another propertyAdditional paper losses from other real estate assetsPassing the assets down to ones heirs giving them a stepped up basisRefinance the asset before sale to reduce realized gainCheck out my write up on the benefits of investing in commercial real estate that is specifically focused on investing in syndications. 

There are enough clueless AdWords investors out there spending big bucks for the 'we buy houses' key word to make the investment a total loss. 

Then you get to deduct depreciation which puts you at a loss.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

And yes there may be liability to the landlord, but the standard policy explicitly states they only pay liability claims due to damages in their residence premise for the causes of loss of smoke, fire and explosion.  

It won't pay me back for losses as windstorm insurance is what will cover me in a total loss situation.   

As far as I can tell I've got identical coverage on every property.I talked to my contractor ,who has built houses from scratch, what it would cost to rebuild these in the event of a total loss situation and he said that $200,000 is the max on all of them except the all brick 1750 sqft one...which would be closer to $250,000. 

I am learning all the newbie lessons in one deal, this seems like a crash course of things that can go wrong while selling.If #@$ hit the fan, I don't know if the county could be held liable for having their records incorrect and causing me a loss, but that comes later.