Just because I see lots of people, even outside RE, claiming that they can cheaply outsource management or some task then go sit on the beach.

Of course there is also a possibility this is some BS story she made up, but the first scenario sounds more plausible, especially if she had been a good and responsible tenant up to this point.BTW generally speaking you can't get unemployment payments if they fire you for cause and not showing up for work is generally a fire-able offense for which no unemployment payment can be claimed.

Should I file an insurance claim?

The plaintiff will win and your insurance company will probably deny the claim. 

It cashflows but your calculations are unrealistic.

Get contact information from the agent or look at the policy for information on where to submit a claim or check the underwriter's web site for information on how to submit a claim. 

If you can, then I think you should ask for (and get) a decent discount for buying at this time.And remember, just because the current owner was able to collect rent - or claims that s/he did - doesn't mean that once you take over, you won't have a building full of non-paying tenants.

She claims due to covid-19 she can't move.

Her lease is up and she was supposed to be out end of April. shes known for several months that she'd be leaving but now claims she can't because of virus.

They are also claiming there is a "cash shortage" and they need to print dollars to "create balance in the system".