I'd say pay for it yourself, file with your insurance and let them fight whoever for reimbursement.Make sure you take lots of pictures and might want to get a couple written estimates for the insurance companys.

I pursued the nothing down strategy because it was the only option - I am not smart enough to start businesses and unfortunately, while I was quite good at playing the fiddle, because of the MS diagnosis I was unable to pursue that career (not that it would have been a career capable of generating any serous revenue anyhow).  

Is the property capable of earning enough income to pay all expenses and debt service while also leaving me positive cash flow?

If there is low risk to you runnning up big costs it may be worth fighting the seller. 

The client had to pay for the Attorney to fight the claim.My advise is not to let anyone work on your property unless they have workers compensation coverage.  

It would take just one case of someone fighting inherited deed restrictions that are contrary to current COA zoning to put this whole hand wringing exercise over outdated deed restrictions to bed.

From what I'm told most people say they'll leave but put up a fight.

Very honest, trustworthy, and capable.  

Just remember when you buy your next investment your DTI will impact your capability to borrow (mortgage) again using residential mortgages.  

Why fight these egregious regulations?