What is the ruling on paying interest on the insurance amount paid by the tenant, and is there a Sharia-compliant way to avoid falling into usury?

The tenant is not liable for the rented property unless there is transgression or negligence. He is not obligated to maintain what is damaged by normal use. It is permissible to take money as a deposit from the tenant for the maintenance of what is damaged by his transgression or for late rent. This money is a trust (amanah) and the landlord is not permitted to benefit from it. Rather, it may be invested with the tenant's permission, on the basis of partnership (shirkah) or profit-sharing (mudarabah). The landlord is not permitted to be compelled to pay interest on this money to the tenant, due to the prohibition of combining a sale and a loan. The money remains a trust, or it is invested with its owner's permission.