What about detached garages , how is this covered and how much coverage is recommended?

You'll have a policy to cover the property as the owner.

The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.

I had the money in the bank to cover it, but it took much longer than expected to get it ready to rent.

So apologies for asking you a basic question that maybe covered in this resource

If you are willing to rent them a room in your house/condo you can help cover your rent.I would stress to only buy a place that would cash flow once you move out.

This question is very basic, so you are best off using the search functions to sift through the forums as this topic is covered countless times. 

If rents are low then you know you will be still covering some out of pocket. 

So it sounds like the default is that it's likely normal wear & tear (or poor installation) and that I would need to pay for the tub replacement unless I can somehow prove they hit it with a hammer, dropped a bowling ball in there, etc...Separately, I can charge them for the water damage since they didn't notify me and have admitted in writing they knew for 4 months. 

BUT, we also require that they actually have some cash on hand to pay for interest payments every month or cover overages.