Since you already paid, file a claim in small claims court naming whoever is on the payoff demand, FCI in this case apparently.Something similar happened to me a while back. 

I own rental properties in one city and two of them had insurance claims in the last 2 years due to hail and tree damage.

Title should check to make sure there is no one else that might have a claim to the property if it's in a strange arrangement. 

If you really want her out, I'd tell her if she leave before the end of this month and the place is in good condition, that you will return her deposit AFTER she is out, given you the keys and you've inspected the place...and as Colleen says, be there with a locksmith or new set of locks to change the locks.Then once she's out, you can try going after her in small claims court for the unpaid rent.

@Theresa Harris I know the balance re cash flow and appreciation, but they should not claim there'll be cash flow if there won't be any.

If they choose not to pay, you can sue in small claims court for damages. 

Unless you have lived for 2 years in each unit, then you can only claim exemption on half of the gain.

AND I did the thing we all read about, as far as getting multiple quotes for insurance and everything, went to move forward with the best one, State Farm, and we find out that we can’t get a policy due to having made a personal articles claim less than three years ago (was probably almost 3 years ago.)Now this was my business partners who made that claim.

Hi Lilly,You're right to question those claims.

If that is the approximate time frame, then throw them a bone and move on.If they have been unable to use the bathroom since the water incident because it was declared unhealthful, then it would have been much better to have made an insurance claim.