From there, you'll have to get estimates for moving costs and hook ups (i.e. plumbing, electrical, gas, air conditioning, etc).

They covered zero water damages from any source 

They're builder grade compared to Lennox or Trane.If you want to save some money use another brand that Lennox owns like armstrong air or ducane. lennox is owned by allied air and allied air owns a bunch of other brands that in a nut shell are a lennox unit with a different paint job. 

Or do you make something up like you are considering moving in yourself, or you need to do some major renovations, or you might make it a short term rental, etc etc etc...it's not the confrontation I worry about but I don't want to risk property damages out of spite.

There are many property management companies though they take a hefty cut and I also think I could rent it with Air BNB.

If there is hail damage, the new buyer gets the payout, not the seller. 

Depending on the market, even use language leaving habitual damage being subject to eviction.

From what I've seen on Air Dna in Durham the market does not make sense as a STR but better as a LTR.  

@Scott Pearson Tenants are responsible for damages due to misuse, accident, etc.

After two months of living there, the tenant said a snow plower damaged our garage door.