They will play a game where the restoration company charges a ridiculous amount to clean it up, involving all kinds of bogus proprietary chemicals (bleach labeled something fancy) PPE/hazmat suits, hazardous materials removal protocols, extreme overkill, removing all the sheetrock, carpet and baseboard, etc. knowing the whole time the insurance company will beat them down to about half their original price, and the end result will be a giant hassle where you end up paying for it all through an increased insurance premium from having made the claim.

If you feel they're being too harsh, think about their intent.

If you feel they're being too harsh, think about their intent.

If you feel they're being too harsh, think about their intent.

To me it feels like too many people jumped into STR, underestimated the difficulty in making it work in a reproducible way and had one of those harsh learning experiences. 

If you feel they're being too harsh, think about their intent.

I’ve considered FHA but I may just go with 5% down conventional depending on the deal since I know FHA can be a bit more harsh with guidelines 

If you feel they're being too harsh, think about their intent.

I googled it  and there is actually a fair bit of chemicals used in this process.  

I know NH is going through some harsh time with STR regulations and banning.