Question - Will my insurance company cover me for any damages that happened to the property and is not related to the tenant in the basement?

For them, it's damage control. 

Learn how to talk to and influence appraisers

Range Stove Top - GAS (if possible) but if not, then COIL (Less easily damaged and less costly to repair than Glass and I personally prefer it)Oven - NOT SELF CLEANING  (We experienced twice when the self cleaning feature was used and cause severe mechanical failure, requiring replacement of the entire range.

Once we figure out the damages (they were smoking inside where the lease forbids it), etc., we will be heading back to court for the additional dmanages.

My concern is that a newer investor may risk their earnest money or may be on the hook on a deal (liquidiated damages up to 3% max on CAR RPA's) because they passed their contingencies or other while being lead to believe they could have qualified.Its like banking on a hail mary...As for FHA second use, the above sounds all woo woo and easy but I just did one of these recently and the underwriter wanted 25% equity on the vacating property (first FHA property) in order to qualify at "all," using one of the four exceptions for a 2nd FHA loan ( 1) larger family, 2)separation/divorce, 3) cosignor, 4) relocation because of employment).

One contractor said that it was too thin, warped and damage.

Have your main influencer (spouse if applicable) read "Rich dad pot dad" let them know it's just so they can understand where you are coming from.

Tile works just as well just its harder to install, takes longer, and is more easily damaged if something cracks the tile.

My concern is if damage continues to happen I'm not sure if the security deposit will cover all the damages and am unsure how successful I would be in obtaining any additional money from the tenants to cover damages in excess of the security deposit.