Lender flood insurance claim on foreclosed property

[Daniel E.]

Took a property back as REO. We were the lender, and plan to do a fix/flip.

When we entered, the basement had experienced flood damage, probably 2-3 months ago. The drywall and carpet needs to be replaced (at a minimum).

We were carrying force-placed insurance. Should we submit a claim?

My concerns are as follows:

1) Insurance claim will take a bunch of time and they will deny it since they do not know the origin, when it occurred, etc. 

2) In their review process, they will determine an 'overkill' level of damage that I will need to repair, and then deny the claim anyways for whatever reason. Since i have knowledge, ill need to repair absolutely everything.

Does anyone else have experience handling this? Are there risks involved in submitting a claim, or should I definitely submit a claim an I am overthinking this? 

Thank you!