They cannot bring suit until the house has been sold to another party, because there are no damages yet. 

that money can go into a trust and when the tenant moves out at the end of June, if there are no damages, the seller can get the money back.

Whatever you buy, I would focus on making sure you can replace it if it gets damaged (and replace it quickly).

If so, how would I ever be able to tell if any damage was committed by them or was previous to their move in?

Did a past landlord have damages that are documented in a court case? 

The current landlord does not have a check in/checkout list so the damage caused is not officially documented in writing so far, only verbally.

Do I need to actually pay my tenant every year, or do I just include the accrued interest with the security deposit (minus any expenses for damages) at the time the tenant moves out?  

Am I justified in using his security deposit to repair the damages?

Yes it was bad in certain areas (closer water and flood zone) but the rest of the population had more wind damage more than anything else.

If you provide anything in addition to the property being leased, and they can argue your negligence damaged their property (i.e. leaving an old refrigerator in the unit), they can make a compelling case that you're in the wrong when eviction time comes around.