This gives them the most protection, but like I said, they're over it and ready to destroy their credit over the double anyway so what's the point?

Ultimately, as a homeowner you view this as a "micro" event--your property destroyed or the 10k too much coverage on your policy.  

You could get that one tenant who passes screening and destroys the home but its unlikely. 

The tenant put the fire out, but it has destroyed the stove and cabinets above it, and coated the entire house with smoke damage.

My inclination would be to dig in my heels and take the "there was grass, it was destroyed on your watch", but the advice of "let them out of the lease and move on" may be the best. 

I had a brand new construction home I bought 200k and the tenant for some reason totally destroyed it.. now it was so bad that the insurance company covered it and went after the guy criminally.. but it was over 40k in damages.. but lots and lots of stolen items stripped items.. contractors stealing .. its a challenge and one that I think is best suited for someone like you who lives there and watchs them like a hawk and with your background that is a HUGE bonus.when I started funding turn key companies in Detroit in 02.. they had some pretty unique systems on the rehab side.. 

What really irks me is the fact that the guy that threw the party had the gall to leave me a negative review after he destroyed my property!  

It’s like the battle between cigarettes and E-Cigarettes, the news just destroyed one company due to their exposure and great marketing, but the rest are just cowering behind the “Big guy”.

A set of recent photos lets you know it's not destroyed, but you want to get a licensed inspector in after you get contract regardless of how something looks (via photos or a walkthrough) so just let the inspectors make the call! 

You would have a better idea of that depending on how new the home is but eventually you will have a major repair due to aging or a tenant destroying your floors.Assuming about 10% between maintenance and CAPEX, 8% for vacancies, and adding the 10K for renovations and closing costs you would come in at a 4.7% CoC return.