If they think you are an A-hole, they may intentionally do extra damage when they do move out.

The double thickness makes it harder for the wind to pass through and the fence will act like a sail causing further damage.

Most of the Sellers I have come across will deduct a few bucks here and there if the water heater is old or the roof has some years on it, but they were solid deals.

I suspect that it's a MF since you are including water and electricity in your projections.

I didn't want it due to structural damage.

I'm looking to flip a property, and I want to get insurance (to cover the house if there is any major damage, but also in case a contractor or anyone else gets hurt at the property).

I too would get an extension on the escrow and my contingencies and hold off on inspection until you have green light.If the seller is getting sued and it is moving forward there is a good chance of him filing BK.If the property is directly involved that suing party may file a lis pendens and could tie you up.What are your damages if seller can not perform, you can file a lis pendens and ties it up on your end.Get title info if you can and seek counsel of attorney or be ready too.Can you close before all this pans out, maybe and if title is clear and you cover your bases might be something to consider.Or might be advisable to let it go and save yourself the headache but that is dependent on the deal itselfKeep us posted

State law may require you to keep damage deposits in a separate account.

Also the single family house has a septic system and well rather then city water/sewer.

It is also a commercial property, but this one has been vacant for at least a year and has been partially damaged by fire.