Your policy, as the original source of the leak, should cover the neighbor's deductible and damage/remediation up to the master policy deductible, "as built", not upgraded floor and wall coverings or cabinets.

When the contractor came in they immediately took out the base of the kitchen cabinet under the sink, And all visibly effected drywall.

The house also needs all new windows (10), new doors, some of the sheetrock replaced, new floors, new water heater, new ac/heater, cabinets, paint and cosmetic work done.

Update on deal 1We are over budget lol estimate about 10k over being we are adding a shower where the laundry was and now re doing the kitchen cabinets since we are now adding the Washer dryer in the kitchen area.

I'm re-staining and painting the cabinets in my student rental and switching out the sink counter (23-year-old white formica with curling iron burns and steel sinks with lots of repaired chips and discoloration) for Swanstone. 

You can get really nice RTA cabinets for 3k to 3,500.

Especially wood floors, cabinets, countertops.  

The uglier the house  the better, show me pumpkin orange walls, teal cabinets, and carpet that I'm not always 100% sure what color it was supposed to be and we probably can make a deal. 

Is there food in the refer and cabinets?

Here's a Baltimore contractor's bid for $40K (attached) - not including fixtures, cabinets, appliances, lights, fans.