It really depends on how negligent you are and if your truly responsible for something like say a hazard, and the tenant repeatedly tells you about it and you do nothing about for months ( they tell you not a property manager right?

Or will this be negligible? 

This means you have exposure now for something some yahoo does on your property whether you were directly negligent or not. 

Done correctly, they can limit your liability in the event you are hit with a large judgment for negligence or other legal issue. 

This would be more malice and less negligence (as with the two other cases)The general inspector must not have observed it, otherwise they would have called it out. 

So the worst case situation here is not a fine or insurance dropping you - it is a dead tenant and you are criminally negligent.

Unless the contractor drove a truck over it or something negligent, I’m not sure how it could be his fault.

There are some good pre-construction options out there, they won't be custom but there's opportunity to put your own stamp on it.He is also correct that there are many mismanaged cabins out here, and rental history is of negligible importance.  

The damage is obviously from tenant negligence, but if they fight it in court it would be challenging to prove they were the ones who did it.

For example, in my lease, I have a clause that reads (in part):“INSURANCE: Tenant’s or guest’s personal property and vehicles are not insured by Landlord, manager or, if applicable, HOA, against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause.