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Do we pursue????

Had a tenant/s who split up, she was left with the rental (our house) and she let it go to crap the last 6 months or so she was there.  Ruined the kitchen floor, which has since been replaced. And let the hot water heater leak (without informing us it was leaking) which ruined all 3 layers of flooring...which has also been replaced.  Needless to say, we kept their deposit and there of course is a remaining balance.  I also allowed them to have 2 rather large dogs without charging a dog deposit, screens ruined, doors ruined.  House was not kept clean, mold and mildew have resulted.  There was also an addendum to the lease which they chose to use the pool.  It is a separate issue in itself.  Wasn't taken care of at ALL!!!! Do I pursue this?  The balance with damages to the pool are just over $700.  However, I did NOT include loss of Rent, or any travel expenses since we live out of state.  Suggestions are greatly appreciated!!! This house was not purchased to bring income, it was once our home, and means a great deal to us!  I cant just sit back and let someone get away with destroying it!! So heartbroken.

I also made an attempt to submit claim to insurance company for the leak and was denied the claim because the damage was not sudden and it was obvious the leak was going on for some time.  I have proof of this........ the insurance adjuster wrote me a letter proving it. Do I take them to court?  I was going to try and give them the opportunity to handle this on their own.
She/they also wouldn't meet with us to sign off on the lease.....instead they/she left me a 4 page letter explaining or making excuses why there was so much damage!!!!
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