Make sure you only add them to the liability section not the property damage section. 

As you can tell, this is a very big step for me and is quite nerve racking trying to make my first purchase as smooth as possible.

If the house attracts the type of tenant who is likely to skip out on rent or cause damages, it could be worth it.   

The "additional insured" puts your name on the payout check with theirs to ensure you get paid for the damage.

When done well, giving a cash incentive to leave voluntarily will still cost you some money, but it may be faster, easier and may avoid property damage repair costs that sometimes are incurred when circumstances result in apathetic or hostile tenants.

Long story short they brought dogs(against our house rules) the dogs damaged the furniture.

Damage is expensive to repair and with tenants that don't respect you, it just keeps piling on. 

I have one in that neighborhood that got some tornado damage and I got a free new roof and siding from the insurance company lol.

I totally agree and had he listed 'prepping caulking and taping house exterior' as a separate 'project' and 'painting house exterior' each with its own separate respective labor quote, I would then consider.However since he and I have discussed the CSLB limit time and time again, yet he still had the nerve to just simply list (on a spreadsheet) $500 labor for painting the house alone, and handed me the sheet with a statement that my compensation is not 'fair', the long and short of it is this person who I consider a friend, isn't any longer a viable handyman for law is law, business is business, and fair is fair.Note: had he quoted something like $400 or something for painting house, I would be glad to negotiate with him (ie, maybe he was under the misunderstanding that $100 would be enough for paint) but he didnt. 

Take photos of any damage.