Renter's insurance pay for tenant neglect/damage?
I'm working with some sellers who's house was damage by the previous tenants in multiple ways. The tenants ran their vehicle into the exterior wall causing significant damage. They also trashed and neglected the property resulting in thousands in damage. According to the sellers, the tenants auto insurance is paying for the damage to the exterior but they are waiting to find out if the tenants renters insurance will pay for other damage to the interior (mold, broken cabinets, trashed carpet, etc). My understanding of renters insurance is that it protects the landlord from damage and theft to the tenants property rather than protecting the landlord from damage to the property caused by the tenants (that is what security deposits are for).
My question is, will renters insurance pay for the damage caused by the tenants, or are will the sellers have to come out of pocket for the repairs? If insurance pays for everything and they do the repairs then there is nothing really left for me to improve as an investors/flipper. If insurance does not pay for the damage then I may be able to help them by purchasing for cash and doing the repairs myself. Appreciate your feedback.