I can see them fighting me and digging in their heels....

Last year, with difficult sellers where they were fighting with each other, we actually raised our offer price a little, and they both agreed. 

As a Real Estate Development, I have primarily focused on construction; managing construction budgets, dealing with contractors, and fighting the battles no one else wants to battle. 

Not a fair fight!

We just moved on knowing it was pointless to waste time and energy on fighting the inevitable. 

this is so so helpful @Jason White, @Joe Splitrock, Account ClosedI am really new at the whole RE business, not to mention the fire, and the fact that I am thousand miles away does not help either.I thought that I am at the insurance/ adjuster's mercy, but now I know that i can actually try fighting their decision if needed.

Some developers even ask for "non-refundable" deposits upfront.As an agent, I fight to get the best deal for my client.

You supply one deposit refund check and let the tenants fight about the $$....not your problem.

I doubt they'd be ok with that and would probably fight it but threw that out there for the attorney to advise.2) Tell the hoa what happened and explain that I can't get them out until the end of the lease and offer to pay a penalty (3 or 4k?)

If you can get a face-to-face interview with the agent that's a great way to weed out the ones that aren't going to fight for your best interest.