We then have an umbrella policy for additional coverage and I add damage protection to all of my reservations for additional coverage. 

Stronger structure for tornados and wind damage, less wood for termites.

It needs roof, ac, electrical, possibly plumbing, new bathroom, new kitchen, flooring repair, siding and fascia repair, and on top of that there is some fire damage.

The carpets are damaged as well.

You need to drop the issue with your parents before you damage that relationship.

Lessons learned is to ALWAYS have capital liquid for fixes and damages in the property and to always background check your tenant as a bank looks through your payment histories to give your the loan same with the tenants our current tenant has not missed a payment in 2.5 years, w/ a stable job and kids.

I would make sure if it was installed in or above a finished space that it had a pan underneath it in case of a failure to eliminate/reduce possible damage.

Some of the strategies I've used in the past are:-comparable sales data nearby-take pictures to show damage or deteriorating conditions of the property-show low rental income or conditions if applicableAny advice would be appreciated.

And make sure you get the exterior thoroughly for structural damage. 

He is saying that it has to be physical damage.