Many sellers are more uncomfortable and less able to deal with "water damage" "structural problem" "roof leak" etc. than we as investors are and this adds motivation to sell (as it should).  

We probably break even on the rent because of the extra damage pets do, but it definitely increases the number of potential applicants, espeically for houses (many of whom want a house, at least in part, because they have pets).

It covers whatever legitimate costs are prescribed for repairs, damages, etc.

Do anyone here have experience good or bad with fire damage property?

The units in my 4-plex have durable laminate in the main rooms, and carpet in the bedrooms.I tell my tenants the % of their security deposit returned is directly related to how much damage and cleaning their unit needs upon move-out.  

The landlord need not repair damage caused by the willful or irresponsible conduct of Tenant, Tenant’s guests, or a person under Tenant’s direction or control. 

Agent: "Is there any existing damage to the property?" 

Best you could do is narrow down the comp situation, then possibly consider a wholetail/wholesale play, and if you do, you make sure you have a contingency in your contract tying up the property that you can get out of the deal with minimal, ideally no, damage

LOL.but when its a rental its really.. bad I had one in Mississippi that was so bad my insurance actually covered it as willful distruction not typical tenant turn over or wear and tear.. 45k in damage  had to take the house down to the studs.

Some important coverages gained under the Special Form are Water Damage (from a burst pipe for ex.) and Theft.