Any one hear of any incidents between landlord and tenant?

Other than this incident they have been great renters. 

The mediator, then says but you stopped paying before this incident?  

Is there an insurance that covers any incident while the tenant is REHABing  the house?

I self managed the property for the first year, without incident, but then things fell apart when that tenant left.

Some let you just break the lease as of the day of the incident; other areas may require some assistance to the tenant.       

Is this kind of incident covered in typical lease agreements?

Fortunately, we squeaked by for six years with no major incidents until I moved to town and could take over.What should you look for in a Property Manager?

(Although he didn't actually suggest putting up fake video cameras, just asked if you were considering doing so.)The mere presence of video cameras does reduce incidents, but successfully using the video to prosecute or even just warn an offender will have greater effect. 

We are one (small) tsunami away from an incident that would for ever change California and have massive global economic impact too.