Does anyone have any experience dealing with an insurance company that is providing temporary housing for a displaced occupant?

Again, if it's an investor loan then it's hard to prove occupancy without a valid lease. 

Owner occupants usually bid higher, your hope is that it will need to many repairs, if it won't appraise out for a homebuyer that puts the bank in a fire sale position, but it will be through the Realtors.

I am in Fort Hood Texas and I was looking around to buy and hold a duplex as an owner occupant in Killeen, Harker Heights, or Copperas Cove.

Running an operating business is a lot more involved than owning a piece of real estate, it's a full time occupation.

But, I'll reiterate one important point -- nobody knows where RE is headed in 6 months, 6 years, or 16 years; if you're break-even and 100% leveraged today, all it takes is a small drop in occupancy rates, a small drop in market rent or a small drop in market value to put you on the negative side.

The buyer closed and there was a clause about if the building was destroyed or damages because of weather the owner was responsible for moving this giant business to another location and rebuilding the current building until ready for occupancy again.

The trailing occupancy will be key as for getting finance from a bank.

Check the crime, income and occupancy statistics for that area.

Plus if there is an HOA you're not going to be able to finance this through conventional financing because the owner occupancy is less than 50%.