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. 

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.

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.

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

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

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. 

Especially if I was to ever file a claim on some $800 damaged, the amount that all my other policies could go up because I filed a claim would go well beyond what the small amount of payout I received from the claim.

Those that claim to cashflow well are either a) full of it or b) old and in a class C area where your probability of being able to achieve those cashflows are low.

@Summer Burke I would offer to cover the difference (as you mentioned) and then pursue recovering that amount plus any related costs from the contractor, via negligence claim if necessary.