The correct insurance won't protect you from liability, but it could pay for damages or a legal defense, if you need one.Jenna ZebrowskiThe Law Office of Jenna Zebrowski, PLLC"Investor-Focused, Series LLC Friendly, Commercial Real Estate Savvy"

Do 1/4ly inspections(which you should be doing already) to look for pet damage(and to change furnace filters).Feel your tenant out during walkthrough.

From what I understand the septic system is damaged and must be repaired.

You are not responsible for damage to her Jeep.

Denver Property Flip completed a predefined scope of work, to repair damage the dogs had done to the house.  

All Contractors are subject to the lender’s determination that the contractors are qualified and experienced, have all appropriate credentials required by the state, are financially able to perform the duties necessary to complete the renovation work in a timely manner, and agree to indemnify the borrower for all property losses or damages caused by its employees or subcontractors.Multiple Specialized Contractors: Since this is a limited repair/renovation program, no General Contractor is required.

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Some things like pots and pans just need to replaced every year from the use.Biggest thing would be if regulations changed in your area and STR's were prohibited.I have not had any significant issues with damage to my Vrbo.

I can’t bill the tenant using a quote so what would be the appropriate way to charge for damages then upgrade the place?

That $200 pet deposit and $25 rent will not even cover a fraction of potential damage from a big dog.