Depending on what they actually accept, they could be in the ripoff category, as mentioned if they don't do much in reality they could be a scam. 

We buy a lot of non performing loans.I suggest to newcomers that they invest with an experienced flipper, fix and flipper, do at least 3 deals and understand the terminology and the way business is done before you venture out.we only accept accredited investors that are highly sophisticated

(I have no experience here)* people just accept the high assessment because they also like the higher property values relating to that?

We offered and they accepted.

But they're not compelled to stay or accept the rent increase either.

This happens periodically and could end up with you either accepting the same sub par returns on your REITS as your rental portfolio. 

Is the Only Way to Negotiate a Lower Price with Builders is to have a pain in the butt inspector find a laundry list of problems and meaningless in the grand scheme defects to compel them to cut their numbers to move to acceptance and closing?

Is it fraud , no they are telling you the cost up front , you accept or decline . 

It may be a little too late since you accepted the insurance money already, but typically you would have a contractor in place (Ideally multiple quotes) before accepting the amount quoted to you by insurance.If your insurance company referred you this company though then after doing more research on them maybe they are the best option?

My HOA only allows one pet but my tenants have a service dog and 2 ESAs and the HOA accepted them.