I will PM you with the lender in IL.My family has too many auto incidents to qualify for umbrella coverage; so, I can't help there.

I've only had one incident where I found a employee (who had a second job) sleeping at work.

Even if you follow the rules and they follow the rules, sometimes an unexpected incident occurs.

Are they behind on rent, or is it for illegal activity related to this incident?  

@Sarah BuchananTake photos of all the damage, along with quotes for how much its going to cost to repair and get documentation of the incident that occurred proving that the police were in there and caused the damage.Take that to City Hall to the City Clerks office and file a claim for damages with the city.  

It doesn't matter until you get sued--then the fines of $10,000+ kick in per incident, per day (not to mention the civil fines for poisoning someone's child).Mold - There are no Federal or State laws in Michigan regarding this specifically. 

For those wondering about Scott R's incident with the hot water, he has this thread:http://www.biggerpockets.com/forums/52/topics/58169-wow-what-now-

Also is this foreshadowing for bigger problems in a house or it is just an isolated incident?

I would not let the women moving out off the hook, unless the incident falls under any domestic abuse laws that you may have in Colorado or he finds a replacement roommate that you find acceptable.

Anyway, do you think the OP has a duty to notify the other tenants in the building of said incident.