I filed my claims without incident and was reimbursed in a timely manner.

And, let's face it, if the insurance company finds out that when the incident that triggered the claim was during a time when a weekly tenant was in there, well, good luck with that!

The principle of insurance is to put you back to where you were before the incident happened.

Following that incident, I got a letter from the city stating they had assessed 36 points on my house and that could shut the house down anytime the basically wanted.

I've had a multi-family rental near Syracuse University that I've rented to grad and law students mostly without incident for the past 12 years.

After the second incident they should be evicted.

First of all let me say that I am a Licensed Professional Counselor by profession so my first instinct is to want to hear the story behind the incident and to believe in the goodness of people. 

She causes a MAJOR incident and gets tenant arrested for domestic violence.

In these communities, the landlord must state the reason for the termination, and the reason may be reviewed by local housing authorities.207 However, incidents of domestic violence may not be used as a violation by the victim or threatened victim as good cause for the landlord to terminate the tenancy, occupancy rights or assistance of the victim.208The landlord must give the tenant a three-day or 30-day or 60-day notice of termination under California law (see "Written Notices of Terminations"), and both the landlord and the tenant must give the public housing agency a copy of the notice.209 What if the landlord simply decides not to renew the lease, or decides to terminate the HAP (housing assistance payment) contract?

Whenever I explain the process (the same line by line items above), I give every single one of them the reason why I require the deposit before I'll stop showings and/or tell any applicant the house is rented.I share with them the story of the two separate incidents I had a few years back where the people bailed on me after I told the other applicants it was rented.