During the renovation, I faced several challenges due to the home’s age and hidden damages, including ruptured plumbing, termite infestation, rotted wood, and lack of insulation.

Any other sympathy is unfortunately just Poor Business Practice.  

Sounds like you have a pretty poor security system.Even with a good security system, having a tenant provide ID is the first step in a professional screening process. 

Like @Collin Hays said, it is being driven more by neighbors tired of poor STR owners not keeping things sorted.We only look for places in vacation areas with a long history of owner driven STRs vs big cities and the like.

I would find someone that can demonstrate that the pipes were properly insulated etc. did they say why they wouldn’t cover the chair?

I've had friends buy new homes and have more problems due to poor construction than I've had in 'older' homes.

Purchase price: $86,000 Cash invested: $2,500 After being done with Rich Dad, Poor Dad, several podcasts (including bigger pockets), and other resources we were desperate to take action.

Those can indicate poor management, deferred maintenance, difficult and expensive upkeep like ocean front which will bring up issues with rising oceans, insurance, and hurricanes. 

If you are young and poor, you have to leverage because its the only way to get some wealth.

After assessor comes out and consults with insurance company, they'll send demo guys out to come do demo work and remove wet drywall, insulation, etc. they'll usually put down dehumidifiers and let the place air out a bit to see what actually needs replacing and what was able to dry out.