The problem is in a partial loss they deduct depreciation so you do not receive the full claim amount. 

The actual claim payments will be determined by the adjuster but you can estimate the reduction by dividing the ACV by the RC.  

My partner received personal financing for the property and then successfully quit claimed it to the LCC that we are 50/50 owners of.

Government has done similar things in the past that they say is "helping" one group of people or another when, in the long run, it hurts the very people they claim they will help. 

I was fortunate that most of the expenses I had could be trimmed without any real impact to quality of life (no medical bills, no children, etc).

This could make the policy invalid if the info surfaces later (during claim investigation). 

I immediately called my insurance to start the claim process and had a water mitigation service (ServPro) there same-day to begin the work of dehumidifying the unit.

ValuePenguin is a good source for the relative cost of insurance by state.Investment TeamIf you needed surgery, you would not start medical school.

So, if you were to end up selling for a lower amount or claim lost rent for the time it sits vacant. 

Alternatively, I was considering bridging the two units and converting it to a luxury family residence (neighborhood does hit million dollar homes) but not sure if the market will support the price tag (this part is easier, and I think the fact that the current owner who claims to be an investor himself yet hasn't made it work... this tells me it probably isn't favorable towards a flip). it definitely is not favorable as a duplex rental so the only way i see it working is to add doors.