G'day Yak,
Who would you be pursuing: the tenants or the insurance co.?
1. You know you will receive nothing with the tenants.
2. You will have a battle with the insurance company.
Do you have, or is there any available documentation (evidence) regarding the former treatment of premises by the tenants?
Was the insurance organised by the agents or yourself? IE: Do the agents regularly deal with the insurance co.?
If in the case the tenants are still there, you have a right to retain their bond to pay for damage to the property and fixtures.
Are the tenants still there? Lease arrangements? Notice periods?
Are you in Vic? The Small Claims Tribunal and the Magistrates Court would be the most likely authorities to deal with your issue.
My suggestion is you seek external legal advice.
Good luck.
Regards,
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