The problem with less expensive properties that cash flow well on a spreadsheet is they typically tend to be older buildings, so even if you're cash flowing $300/month - if you have one bad maintenance call that costs $2k to fix, or a crazy leak that causes a ton of water damage, you've wiped your cash flow out for ~6 months.

It does damage AC units when they are ran during the colder months.

I would also be concerned with the liability, and would probably ask them to obtain a renter's policy that covered their guests and any damage to the property or any liability.

I haven't had any damage and still book for families to our Lake house.

I'd like to see the statistical verification that this type of applicant "has a good chance of winning" and also what they are suing for... damages for mental distress?

You help set the value but if you are significantly under-insured and have a large claim they may pro-rate your payment based on the damages relative to actual value. 

Per the photos that she send, it appears like the something on the stove got on fire and caused the cabinets to damage.

It does damage properties, but I don't think any more so than people who fry foods and don't clean after themselves.For the animals, I'm not sure that a comfort animal is protected by housing laws and exempt from pet fees/deposits.

Apartments damaged and destroyed by losses covered by insurance will not be rebuilt.

Their problem, unless the tree is obviously damaged/unhealthy.