A current tenant has damaged the rental property beyond the normal wear & tear. (3 by 6-foot hole in dry wall; Garage access door complete broken off with damage door frame, the main entrance door way frame is broken and need to be replace, damage to the rear entrance door frame as well).

I've seen tornado damage, but I don't think I've known anyone personally that was affected...and really not common.I would normally estimate about .75% of the value of the house for yearly insurance.  

Owner shall not hold the Agentliable for any willful neglect, abuse or damage to the Premises by tenants or vandals or others nor for loss of or damage to anypersonal property of the Owner or any tenant including loss due to exchange or theft by tenants or any third party.

If you're referring to Airbnb/VRBO insurance for damages then I would say the clear answer is "no" but you can purchase a variety of products to lower your risk.For bookkeeping, doing it yourself or hiring a bookkeeper would both make sense.STRs will have all of the expenses that an LTR would have plus a bunch more like toiletries for example. 

And also as mentioned, if you make claims now, even Zero Paid Claims (they say there is no damage and/or they don't pay you anything) it still counts against you now!

Damages can eat up your profits quickly. 

Now we will have to put in some rehab during to severe water damage and general updates.

Are there any special protocols in repairing the fire damage?

I shouldn't have to ask my landlord's permission to celebrate my religion and put up Christmas lights provided I'm not doing any damage to the home .

We mainly work on bathrooms and kitchens and restore what the restoration companies tear up when they mitigate water damage.