{This has evolved out of concerns over counterfeit bank notes} However, official government policy is to encourage retailers/lenders to leverage the security features of Canadian bank notes as it is a more effective protection against counterfeit losses.

Sounds like your legitimate losses may exceed the usual cap ($5000?)

We had our house burn  down   a total loss  due to a remote control  traxxas  battery charger within 30 minutes whole  house suffered  smoke and water damage happened  about  a year and a half  ago thank God no one was home and it happened in the day time.  

“Pets/animals” include, but is not limited to, both warm- and cold-blooded animals, such as dogs, cats, fish, rabbits, hamsters, rats, birds, snakes, lizards, and insects.Tenant agrees to pay immediately for any damage, loss, or expense caused by such pets/animals.

It's funny if you lose money irs wants you to be an investor so you can only write off 3k a year of your loss, but if you make money they want to classify you as a dealer. 

I suggest you immediately find a new tenant in order to mitigated your losses.

Said deposit to be used in the event of loss of or damage to the rented property and any accessories/equipment during the term of this Agreement, to defray fully or partially the cost of necessary repairs or replacement.  

You won't be able to really create a list as loss can come from all sorts of angles.  

A tenant's son who smokes, which isn't great, might not financially be worth pursuing (a functioning cash-flow vs an expensive eviction case and loss of rent). 

We typically have paper losses thanks to depreciation, so no taxes.I think the bigger consideration is what do the hefty Texas taxes do to your cash flow: are you positive or negative at the end of the day in real cash terms.Be sure to protest your property taxes each year to try to keep the tax appraised value down.