All Landlords risk tenants damaging the home, but a NICE home attracts NICE tenants so the fact that you've made the home very NICE means you should be able to take your pick of applicants.

You want to make sure they are properly installed and you don't want tenants moving large appliances in and out of the house as it will cause damage. 

If these type of damages occur in the future, I would recommend holding the tenants deposit, or if there is a claim to be made through the insurance you sell them you could approach that avenue.

I removed the chimney entirely and installed a full HVAC system, making it the only house on the block with modern heating and cooling.

I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

b) How do they (Cali Govt) deal with the damage, both in terms of who gets the blame and also where do they get the money?

His God complex and giant ego won't allow him to reflect on the damage he's done  keep in mind if the SEC detects a serious issue and one that could harm investors right now they have the power to take emergency action and shut them down.

.🔹 Property Tax Relief – If your property is severely damaged, you may qualify for reassessment and potential tax refunds.

@Melissa SejourRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

In my basements tenants have access to they totally disregard the access required and block the pathways needed for access.