The "service animal" is not authorized by your insurance carrier due to its dangerous breed clause.

I might recommend that you tender this matter to your insurance carrier for defense and indemnity but won't know whether to recommend that until we speak further.

We represent 30 Insurance carriers and none will stay on a property once they find out about Knob & Tube.  

Ask them to let you know if there is something out of the ordinary.Try to find the 'mayor' of the block and talk them up.Speak to the mail carrier, ask if there are any recent additional residents getting mail.And definitely post a notice of lease violation--assuming your lease has a 'no additional residents' clause.

With that being said, many carriers have recently adjusted policy and require rebuild cost, as opposed to actual cash value now.

I have a public adjuster who is also a contractor so he can negotiate with the insurance carrier and do the repairs. 

You have 3 options,1)  Retain the risk 2)  Pass the risk onto the insurance carrier by paying them a premium3)  Require the contractor to carry Workers Comp and General Liability insuranceYour largest liability in your situation is Workers Comp.  

Check your latest mortgage bill and call your insurance carrier to make sure you're in good standing then proceed with the claim. 

Industry standard for shipping carriers requires you make note of damage quickly if you want to make a claim.

I've recently heard bad things about them not paying claims from a fellow BP member and looking to make a switch to another carrier that is more commercial oriented.