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A few questions:
1. Does the CAAT support explosives (8 CF) used during the assault phase destroy ALL insurgents and suspects in the zone on every level 1, 1', 2, 2' and R?
2. Can you only use these explosives by being on the entry point in the courtyard (C)?
3. Also, does this reduce the building to rubble with penalties attached?
Whatever the case, this game is awesome!
1: 13.7.1, only a single assault, so other insurgents/suspects are unscathed
2: no such limitation
3: no (this is not stated in the rules)
I understand your doubts: you are thinking about destroying the full structure with C4
But you should think to explosives as tactical charges used in assaults, typically to blow a door/wall.