My advice would be to speak with a good insurance agent and just make sure to purchase the right insurance and enough of it that you're comfortable. 

You may need  the following people on your team: mortgage broker, insurance agent, RE attorney, accountant, GC, handyman (down the road).

Generally, Realtors rely on title insurance companies to search title history.

To set the stage, here are a few key points:Property:2 story townhouse2 bed / 2.5 bathMostly carpet18 month old (yep, its brand new)Situation:Nobody was hurt to my understandingTenant did not have rental insurance even though it was required in the lease per my property managerTenant admitted, in writing, they caused the fire.Kitchen fire that burned the kitchen completely and I have smoke damage throughout. 

But section 8 has policies for raising rent, so be sure that is something that you can do before spending money on the property

Just insure it is installed correctly

Perhaps, this is something insurance would cover? 

Involve your insurance company immediately.   

For subject-to transactions, the POA won't get around the "due on sale" clause, but it will help you do very important things like cash escrow refund checks and insurance claim checks, and other borrower-centric activities.

This year one can not claim the insurance as tax deduction.