I suspect if your property owners contacted their insurance companies (and their lenders, probably as well), they would find out that what they are doing is against the terms of their insurance and that everyone would have to lie in order to cover a claim. 

Yes it can be done and something that simplifies it would be doing a quit claim deed into the LLC that holds it, and simultaneously refinancing it into something with a new lender.  

If not, hopefully you have a professional finance company that will help you to get resolution.Going the legal route is always an option and depending on the ceiling with small claims court in the location of your STR, it is very inexpensive to file but you may need to have someone attend in your place - call the local court and ask for assistance and clarification.Finally, not trying to sound preachy but this is often what happens when you try to invest long distance and have to rely on people you do not know and do not know you. 

@Erika Whitten  Does this mean that if having a homeowners policy and tenant creates fire damage, and LandLord does not live there anymore, that the insurance company will not cover the claim for fire damage?

Most people use a quit claim deed and put either $0, $1, or most often, $10 as consideration.

Also, am able to I claim full depreciation on my tax return?

If there is a treaty for the avoidance of double taxation between your country and the foreign country, you can claim the taxes paid overseas against your domestic taxes and you will only pay the difference between the two tax rates if your domestic taxes are higher.You could decide to not pay your overseas taxes but, if you do that good luck if they catch you and you have to go to a foreign court to defend yourself.

If it is a rental property, you can't claim it as a personal residence anyways, so that is a non issue.

I get the feeling you don't fully understand tax law, which means you run the mistake of over or under claiming expenses.As others mentioned, cost segregation is only for properties you own, but I don't think it makes sense for an owner occupied STR.For the property you own, you will need to setup basis for depreciation.

I opened a claim with my insurance company immediately, and before they were able to send anyone out, I received a call from a public adjuster saying I should sign with him because he will get me better than what the insurance company would offer.So I am wondering if anyone has ever interacted with public adjusters in general?