Also, a good CPA would be welcome as well.I'm eager to post my fist victory soon!

Claiming profits shows income.

@Tony CastronovoMy guess is that you would lose in small claims court. 

well it is insurance after all they are in business to make money not pay on claims.  

well it's considered owner occupied, I never claimed it as a rental.

@Benjamin CowlesYeah, you have to decide what makes sense for them to repair vs. what makes sense for you to repair.If they are on the hook for things they might break or clog up then you won't be getting calls at 2AM for minor stuff.However, if you show up to the house one day and they've installed new flooring or other items they can't take with them when they leave (this happened to my folks years back on a rental), then they might try to claim they added value to the property and have something at stake. 

I see these claims all the time and just responded to one yesterday who claimed $800 monthly cash flow because they failed to include all operating and CapEx expenses.

If something were to happen and you put in a claim, (only do so if you REALLY need to) the 2500 would just be subtracted from the payout.

The Security Deposit goes with the lease and if the lease has not terminated, the deposit is neither claimed nor refunded.

The original recording in my name was on January 5th, and on January 19th I did a quit claim to put it into our deferred entity (an LLC).