That coating, which doesn’t cost much more, protects the interiors material from sun damage, lowers the amount of heat from the sun on the inside, and allows visible light to still shine through.

On a more serious note it will depend on what the damage is. 

The tenant put the fire out, but it has destroyed the stove and cabinets above it, and coated the entire house with smoke damage.

If so, I'd suggest asking their opinion, especially in regard to safety issues.But if you want an itemized list of educated guess opinions:FIX:Driveway and sidewalk...especially if the concrete has separated and poses a tripping riskMAYBE:Upgrade electric panel to 100 amp.Ceiling cracks -- have them investigated to see if this is telling of a larger issue, i.e. water damage or settling foundation, unless the inspector didn't think that was the case.

-Section 8 tenants tend to follow the rules or risk losing their voucher-If a Section 8 tenant damages your rental (and the deposit doesn't cover it) you can get a judgement and if you provide the Section 8 office with the judgement they will require the tenant to pay it before he/she/they can move into a different Section 8 property-Section 8 tenants tend to move less than typical tenants (especially if your property is halfway decent as most Section 8 properties in my market are in bad areas of town)-In my market, a Section 8 unit isn't inspected by the city because the Housing Authority inspects it yearly.

Doubt it...Are there any concerns that water issue will damage your unit in any way?

Long story shore tenant damaged laminate countertop.

technically I mean.. as its not rent its a deposit for damages ???

A good listener is oftentimes looked upon as a good conversationalist even if they don't say much - How to win friends and influence people by Dale Carnegie.

If the cost does substantially exceed your deductible and would warrant a claim, ask your agent what the typical premium surcharge would be for filing a claim under vandalism.Should everything line up to file a claim and you do have coverage for those damages, the insurance carrier will issue payment to you.