The damages exceed their security deposit.

If you are offering 50k over asking, a regular home inspection usually reveals 3k-5k worth of issues, so in the scope of things that's collateral damage. 

The listing agent told us that if insurance offers them enough money they will leave the house as is, instead of repairing the damage. 

Normally, PMA's provide that the PM is entitled to damages for early termination, such as, the fees the PM would have earned for the remaining term or perhaps liquidated damages.

Here in Florida, even the well dressed, failed lawyer type Agents, driving Mercedes, working for big companies, don't know what they are doing. 

If you don't have such clauses you might not be able to do much or might be limited on the damages.3) What is the damage/condition of the property? 

It has worked great for me.The only downside I see is the potential for damage and also the long orientation that has to be done if renter's haven't used an RV before.My wife and I considered buying an RV to mostly rent, but decided not too as they were very hard to purchase last year. 

What should I do if the AC company agrees that the contractor is somewhat responsible for the damage?

If she uses her security deposit for last months rent obviously I have no security for damages or other issues or any real guarantee she is going to leave at the end of the month.

Also, landlord and tenant are guilty of violating their agreements with the Section 8 program.At this juncture, the landlord should use the security deposit for what it was intended for.... damages, extra cleaning, unpaid utilities, unpaid fees, unpaid rent.