I am not an agent, but after doing a bunch of deals, I have seen many situations occur. 

The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.

It covers the fact that the property is sitting there vacant and that during rehab things might go missing (tool & materials thefts) or damages / injuries could occur (like a fire).

Like the previous poster mentioned, I don't want damage to occur to the property nor do I want to have the previous owner be taken from the home by force.

That, combined with regular inspections, and cooperative tenants reporting leaks THE MOMENT THEY OCCUR, should help Landlord be proactive.

It gives more wiggle room for repairs on your first property in case any unexpected occurances may happen when you buy.

If it was a accident their policy won’t pay for your property.Insurance is super important on a rental not only because of property coverage for instances like this but also for the liability.

How long has it been since the water/moisture occurred/entered the building? 

@Ryan Adams The reason policies have vacancy clauses is exactly what’s happened here....in a avacant property when a water leak occurs it can go on for weeks without being detected, as opposed to almost immediately if someone lived there.

But in terms of "how" the savings actually occur (which seems to be part of your contention), everyone says that, for example, if you won $130,000 in the lottery and dumped it on the mortgage January 2023, the resulting $105,308 in interest savings basically comes two places:The last 30 months after your lottery payment where you still pay interest, but it's a lower amount and, The last 23 years and 5 months of the 30 year term (the time that you no longer have to pay your mortgage) The problem is, I can never get the math to work out, so here's what I come up with and you tell me where it's wrong.I get an average interest payment over that time of $273.XX and multiply it by 281 months (23 years and 5 months) for the bulk of the savings - $76,715.The remaining 30 months you are still paying are at an average of $43.56/month of interest for a total of $1306.95 interest that you have to pay on your last couple years.From Feb 2023 to July 2025 you WOULD HAVE paid an average of $559/month for 30 months which equals $16,770.