Sorry to hear of your problem:(.
In our case, we had a leaking supply pipe. It was in the slab, below an inside wall, supplying the hand basin in an internal en-suite.
The insurer paid for all restitution work after the repairs, and for all damage done by the leak. What none of them will pay for is repairing the actual damaged part or parts. We had to pay for the replacement of the burst pipe (normal wear and tear and age caused the damage to the water pipe). They paid for locating the pipe (expensive - under the slab ... ), and repairing all the plaster and paintwork that had to be ripped off the walls to replace the pipe with another one. Their costs were of the order of $2,500. Ours were about the same.
However, we took the opportunity to install a new instant HWS supplying this bathroom, but also had a couple of taps for the gas and water installed at the same time that allows either of the two HWS units to supply the entire house and shed if necessary. As our house is quite long, it used to take forever for the hot water to reach our en-suite, and we wasted a lot of water doing so. I cannot wash my hands under cold water when it's cold - I have
Raynaud's disease, so cold water is a no-no for me. So it did benefit us considerably in the long term, just cost quite a bit for the new HWS (around $1300, IIRC).
No matter which way you slice it, paying out $2,500 is a lot better than paying out $5,000! Had we not been in residence, the resulting flood (covered by the insurer) could easily have caused tens of thousands of dollars damage, and huge problems for us, if no further actual expense.
