What are the implications of accepting and denying section 8. 

If such is prohibited in your lease, then they are in violation of that lease and subject to all that it entails.My lease lists physical abuse, verbal abuse, public intoxication, public disturbance, threats, illegal drug use, etc. as causes for eviction.

@Rodrigo Orellana I’m a LL in Illinois as well, giving the 30 day notice probably won’t work if they are tenants that will abuse the COVID-19 situation, be careful they don’t end up not paying in this tenant friendly state.

Go to the people who have a long-term working relationship with known landlords who want to work with them and people like your wife.There's no way you're going to successfully sue a landlord or their property manager for denying your prospective co-tenant with this unimpressive handful of facts anywhere in the USA.

That being said, if you were to have a claim with the wrong type of policy in place you will most likely be denied coverage.

If they just told you something verbally they could deny they said it or say you misunderstood what they said etc.You might want to get a real estate attorney at this point to review your contract and steps taken so far in the transaction with timeline of events.

It was an abusive relationship.

I try to visit every house every month so I can see that it's not being abused.

I see claims denied all the time due to the wrong named insured, wrong address or incorrect issuance of the policy vs what had been sold- all which could have been avoided had the agent done their job and the insured actually read the policy.

So here I am with liquidity that's 5x my loan balance, with properties that cash flow my loan balance in a few months, and I was denied.