The police ruled Dorner a "Domestic Terrorist" a few days ago.
Check your policy, I'm nearly certain it has a acts of terrorism rider, probably right next to the acts of war rider.
The property owners may be screwed. I once had the happy task of telling a property owner that we had to destroy the house in order to save it. Then the state claims sovereign immunity. (I often caught the crappy jobs. I wasn’t a favorite of management.)
Long story short - guy refuses to pay taxes. Property goes to sheriff sale. Investor buys property. Former owner stays and eventually has to be evicted. Guy pulls gun on constable. SWAT team, prolonged siege, gun battle, tear gas, armored vehicle crashing into place. Hilarity ensues. Semi-happy ending though, suspect ran out of ammo and gave up. No injuries. The investor was only out about $5K.