Brampton, ON Property Fire Damaged, Insurance refused the claim to repair. Advice?

[AJ Badur]

Hello all,

I am new here and specifically joined for this purpose. My parents own a freehold town house (4 bed 4 bath) in Brampton, ONTARIO which was recently damaged by a fire that started in the adjoining (neighbor's) unit and spread through the roof. The roof structure has been damaged by the fire and the entire upper level of the house has been affected. The middle level has water damage due to the fire fighters bringing in the hose. All professional quotes I've received to fix it are saying $150k-$200k.  The house's current market value is estimated around $950k - $1mil. 

The house is less than 10 years old, they bought it 2 years ago for $800k with a $160k (20%) downpayment. Remaining mortgage is around $622k. Also, the mortgage rate initially was 1.8% variable with a $2300 payment. Right now due to the rate increases their payment has gone up to $3300 ALL INTEREST. 

They have talked to some lawyers to fight the insurance company's decision, but that will take some time. 

In the meantime, any suggestions on what we should do with the property is more than welcome. The house is uninhabitable and the $3300 interest only mortgage payments are still coming out. Who knows how long the lawsuit will take. 

Thoughts?

I'm seeing them really stressed out over this situation and feel kinda helpless in this situation so I decided to ask here for advice. Appreciate you all!