You may be able to place an insurance claim if you think it is beneficial, but I would only do that if the cost was high to avoid rate or coverage impact.

There's also the option of a debt-service coverage loan.

You want them to have Workers Comp coverage and a GC licenseMeet them on-site when they go for an estimate so you can meet them in person and share your vision for your renovation or have your realtor or PM meet them in your stead. 

If your carrier is not okay with you renting it out on a short term basis you will need to find coverage elsewhere. 

Additionally, talking to someone and getting a comprehensive history would be helpful.

There is media coverage of this story and could result in good PR for party or group that is able to help relocate these residents.    

@Eric Andersen I would verify with your insurance agent that the landlord/owner policy would provide coverage for this risk.

I would recommend getting umbrella insurance over your regular policy to better protect yourself and it often makes the insurance company make sure you have the insurance you need to have that coverage as you are getting coverage beyond and above for a lot of different things when you add on Umbrella insurance. 

I also carry quality liability insurance coverage. 

Just sharing in case it can help someone as these loan types are not as common. There are loans for investment properties that you can use debt-service to qualify with instead of income. So more or less if the propert...