I would think a rabbit does less damage than a cat or small dog. 

For example, if a family is displaced due to extensive water damage that will take a few months to repair, the insurance company will then look to find temporary housing for their customer/displaced family.

Maybe best to wait to see whether Berkeley's brain damaged voters pass anti homeowner ballot measures. 

The unit was completely dirty, damaged and looked like a fixer upper.

If you win, they will have to pay the extra expense of the filing fees, etc, on top of what you say your damages are (which would be the cost to hire someone else to complete the job).   

If you have a BAD tenant experience on this property as a rental and lose several months of rent and incur substantial tenant damage that is all coming out of pocket whereas if you had even a handful of rentals the performing rentals and the monies budgeted for capex/maintenance/vacancy will carry that sort of loss.

Any suggestions on how to legally put Damage Deposits into a CD to gain interest? 

They don't inspect and only discover damages three years later when the tenant leaves.

Issue: Last October 2023, a pipe under the floor leaked from my upper condo unit to the downstairs unit causing damage to the neighbor's kitchen.My condo was paid off, so little did I know, I didn't buy an insurance policy at that time (failed). 

But I have pictures from before they moved in and plenty of pictures of the mess and damages.