Red Flags / Risk ChecksInsurance: Notify your landlord insurance if you think this could become a liability claim (nuisance, harassment).

Can anyone recommend a good single-family home insurance company in Atlanta, Georgia?

If you do proceed, a well drafted lease with strong indemnification language and additional insured coverage under the tenant's GL policy would be critical. 

I think in California, it's a STR insurance program, so it's a bit of a state specific question! 

The rental insurance likely was already paid for the term of the lease, and I assume this was paid by the tenant.

If you proceed, make sure you go through a competent attorney to have this loan properly originated and documented. 

Insurance- Use UHaul "Ponderosa" insurance, plus their customer insurance. 

I suggest you submit a claim to the insurer and see what they say. 

Even if that liability event is a covered event, expect a ton of your time spent dealing with the litigation, your insurance premiums will increase (likely forcing you into surplus line coverage), you will be explaining the claim history to lenders and overall you will be viewed as a higher risk investor to work with.

This is what YOUR insurance is for, so that you don't have to pay out of pocket, now whether you have insurance or what type and if it covers this situation that is completely on you. 3) Another Problem Tenant: "Once repairs were completed, Evernest vetted and placed a new tenant, who refused to pay rent and caused an additional $5,000 in damages."