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I hope you change PMs! The reason for having one is to help and sort out problems like these. Interview them, they don't need to be interviewed at the IP although they will ask to see. Have a bunch of questions and do your research on them, even call them pretending to enquire about a property...

hmm, thats wierd. Is your insurance specfically for Landlords Insurance? What is your PM suggesting? Insurance people will do anythign to get out of paying out. Either way whatver you pay, tenants will need to pay for the damage