No one could explain the process/requirements and just finger-pointing to other departments. 

There should not be anymore out of pocket fees, but your lender should have explained these fees to you. 

Thus far Airbnb is saying they will not refund the guest as it does not quality for their extenuating circumstances, hopefully they do not reverse course on that decision.My understanding is right now the only valid CV cancellation is if you are travelling from overseas from China or a couple of other countries and your flight was cancelled, or if you are military or medical and and being called to service (existing interpretation of the special circumstances policy as they explained it). 

I went over to look at the situation and it seems like an issue that's been going on for much longer than they initially explained.

Talk to a few insurance agents to compare policies and they should be able to explain the difference to you.

Can someone explain this to me?

It just needs to work for you and your objectives.

When the tenant gives notice, give them a simple one-page form that explains the deposit refund policy.

Most inspectors are more than happy to explain this during the inspection if they are not find another inspector.As you progress you may be able to get away with forgoing an inspection as you become seasoned to spot, not only a great deal but also know the major things to look for but in the beginning have patience, keep your systems in place, work the leads and make smart choices....... the deal will come 

Can you explain?