Every state is different as is every insurance company but being that you likely cannot 100% confirm that the loss occurred during the time the past owners policy was in effect you would be hard pressed to have such a claim covered.

Your lender, also your partner in this transaction will also provide guidance of what they require.

Having said that, I knew I am not effectively deploying my available resources so far by keeping debt free and leaving all my home equity 100% idle. 

i.e. using your end buyers funds to close your purchase transaction?

He also mentioned that the boyfriend of one of the sellers now wants the house and they've discussed putting a tenant into the vacant unit so it sounds like they're trying to delay the transaction so the contract will run out.   

Double closings are where the end buyer authorizes you to use their funds to close on your precedent transaction (i.e. the house they want to buy that you haven't bought yet).

It’s never stopped a transaction but it’s a definite headache and head-scratcher not knowing when these arbitrary guidelines apply.  

Greetings BP'ers,Can you name some of the most cost effective strategies you employ to ensure forced appreciation on your properties?

I thought if that too, but unfortunately it’s cumulative so even if they were separate and did at different times they look at the effected square footage on the entire property so I can’t get away with that.

Transferring appreciated assets between entities is a fairly complex transaction.