Property damage on rentals

[Faustin Hoover]

Hello all I do not own any rentals yet but I am looking. I have a question for those who do own them. If you have a tenant who damages your rental property and you try to bill it on their credit card you have on file but it is maxed or they don't have enough on the card how do you go about trying to get the money? Will collections work or do you have to go to small claims court? What if that person doesn't have the money at all and doesn't currently have a job? Do you just lose out and have to pay for the repairs yourself? Will insurance kick in?

I'm sure this doesn't happen all the time just curious if anybody has gone through this process? Thanks in advance!