Tenant threatening to sue and wants to extort money

[Pankaj Malik]

Hi, My first post so Thanks in Advance. 

I have a tenant that moved in and reported Foundation and wobbly toilet upstairs. The contractor I hired finished the Foundation work in 4 weeks and tenant started reporting damages, thefts to items in Garage which contractor denied. While replacing the toilet, a burst pipe caused Cat 3 water damage that rendered large part of downstairs kitchen and upstairs bathroom unavailable and cordoned off for repairs . I involved insurance, remediation, restoration and they all did their part and finished in 2 weeks. Tenant chose to stay in house during repairs citing Renters insurance declined coverage. During this time, tenant complained of cross contamination, claims got nail in foot while in kitchen - all the same time accessing these areas to take pictures etc. Tenant also claimed possible mold, rotted subfloor etc, which Remediation said they found no evidence of. Contractors also saw an unauthorized pet during this time, which tenant confirmed. I offered to break the lease but tenant did not take it. 

Months later, Tenant is now claiming close to 10K. Itemized breakdown has ridiculous amounts for damages, thefts of toolboxes, medical claim, loss of use etc. When advised to claim from Renters insurance, Tenant wants my Landlord insurance policy number and claim number, which I am not comfortable giving. Reason given is to file claim with Renters insurance. I offered a month’s rent in addition to what was reasonable for loss of use of 7 weeks of garage and 2 weeks of kitchen/bathroom unavailability (adjusted for back rent for unauthorized pet) but no response from tenant other than pursuing legal option unless I share Landlord insurance details. What should be my course of action- I really don’t see the tenant appreciating what has been done and would rather break the lease. 

Thanks!