They have talked to some lawyers to fight the insurance company's decision, but that will take some time. 

Also, when the property is re-assessed, you can usually fight it and pay about 75-80% of that value.Example: $300,000 purchase price would be ~$6,900 annual taxes as a worst-case scenario full assessment.

I've put a ball valve inside the basement (which is locked and off limits to tenants) that I can turn on when I need exterior water, but it precludes tenants from washing their cars, having water fights, filling a pool, or just turning it on and letting it run because they are mad about something.My lease also states that using water for the aforementioned reasons is prohibited. 

I lost haof of my EM because someone broke into a house I had under contract and damaged the house,,,it clearly had not happened when the HUD inspection had occured, or when I put the house under contract,but I had to fight like heck to get half of my EM back,,,,forget HUD homes after that

Why fight City Hall?

A true tenant is at least fighting for their ability to have shelter.Also, presumably that company will ultimately be putting someone in the unit, which you may have no control over, since you leased to the company.  

You have to check and balance the results but if you can get the ball in the redzone vice fighting to get it down field from your endzone, then that can be a game changer.

Can you afford to fight a claim?

I'm currently working on my goal to purchase my first apartment building in the Twin Cities metro area this year and am fighting analysis paralysis & concerns about making a bad deal. 

Had to fight and wade through a lot of twist and turns: my closing date got pushed back 7 weeks!