Can I charge to have the carpet in those rooms replace simply because the excessive damage is the only reason I have to change the carpet?

Recasting your mortgage should only cost a few hundred dollars- Add a HELOC on the remaining equity- Pull from the HELOC and invest in a great deal- Throw all excess cashflow at your remaining mortgage.

Each building ,I have about 1,000,000+ in coverage ,which seems kind of excessive.  

Definitely a good problem to have.Overall, just create at least the impression of cash flow and excess cash to look more stable on paper.

In a nutshell, running a solid business, providing a safe property, a good lease, property insurance and an additional umbrella insurance are your first 5 lines of defense - someone needs to sue you in excess of 1 million AND win, before they can come after you.

If they did not report that it was excessively hot, how could you know?

Umbrella insurance is a type of personal liability insurance that covers claims in excess of regular homeowners, auto, etc.  

.; occupying the nicest room in the place I was house hacking, then buying my own house, then buying a nicer house, etc.)...but, I was careful to avoid excess "lifestyle creep" --I didn't allow my increasing expenditures to out-pace my increasing income.Good luck out there!

It also creates the perception that you have excess money to give.

Contrast that with an investor keeping excess cash in a 0% checking account.