Slow repair from water damage - tenants asking for reduced rent

[Peter Burnside]

Had a pipe blowout almost three months ago. Kitchen and basement are torn up from the water remediation and the insurance company has not yet given the go-ahead for the repairs.  Tenants have put rent in escrow until the repairs are done and are asking for a reduction in rent for the duration of the incident.  Insurance will cover lost rent if the house is not livable, but will not cover an inconvenience loss/ reduction in rent.  What would your next step be?