I would make the property habitable whatever that might mean fixing plumbing and paint and concurrently I think you have to do lease violations and start eviction.

No issues with @Costin I. deciding Steadily wasn't your best fit but you're painting with a very broad brush to say their insurance is only for total losses or that they're systematically over-insuring their properties to keep deductibles high. 

Fresh paint throughout, minor repairs, updated outlets/switches, backsplash tile in kitchen/bathroom.

People need to see a pallet that they want to paint.

I'm out a months rent, any might have to paint.  

They literally go out of their way to find the smallest chips, screw holes, stains, paint splash, paint bubble, ANYTHING.

Painting the walls to remove dust, dirt and nicotine marks.

You could easily find a light flip (carpet & paint) that also has the potential for a basement kitchen addition. 

I have already got paid by the insurance .now it comes to signing the contract with this restoration company ( the same company that dry the house ) , and their contract was very basic .. it didn’t list in detail of what they were going to do  .. for example 1.initial material ___$upfront 2.drywall / paint  _____ $upon completion 3.Cabinet completion _____ $upon completion 4.Flooring _____ $ upon completion 5. 

If there's any data that you would like me to provide on top of this to paint a clearer picture please leave a comment and let me know.