Intentional Tenant Damage / Alternative Eviction Options

[Bryan Normal]

I'm a bit new to REI, and have done a few flips. Recently took on a house for a great price, due to having existing "squatters" inside. Figured I could likely Cash for Keys them, and also figured that the worst case scenario's I had in mind, must have some decent options I'd figure out later through lawyers, police, or insurance. Well, I closed on it and basically it's a drug house. I got all but one of the "underlings" to vacate for free, but the head gang-banger in charge is very much a moving target. He goes by aliases, won't meet in person, but has stuff inside the house. He won't talk to me on the phone, but will text, and isn't interested in Cash for Keys unless it's done very informally without him giving his real name. He is obviously making threats about causing heavy property damage, and trying to goad me into evicting him because apparently he has a lawyer ready to go. Police officers are mildly helpful, but obviously they stop short of getting too involved.

I initially thought, "Well at least my insurance will cover it if he causes $30K in damage or something". Then read my NREIG rental insurance, and sure enough, it does not cover intentional "tenant" damage. So I've gotten myself into a pickle here, although nothing terrible has happened yet (it's just imminent). Does anyone have a recommendation on insurance companies who offer coverage for intentional tenant damage? Or on what constitutes damage as "vandalism" as opposed to intentional damage to an insurance company, since vandalism is sometimes covered? Or do landlords really have no recourse if a tenant just decides they want to flood your property or start it on fire? This guy only goes by aliases, and even if I could sue him, he'd likely just file for bankruptcy.

I have of course started eviction proceedings, but could be a while for them to finish, plenty of time for him to wreck the place. I'm also going to try to find a way to catch them doing illegal activity and get them out that way. But short of that, I'm not sure what I've gotten myself into here. Any advice?