Purchasing rental property with prior water damage claim

[Jason Woodford]

Hi All, so I'm in the process of purchasing my first buy and hold rental property.  I've found a place that I like and the numbers play out very well but when I reached out to my insurance agent she notified me that four years ago there had been a large insurance claim for water loss on the property.  I have received paperwork from the current owner that substantiates a portion of the amount that the agent said the claim was for, but there is still a large amount that is not included in the repair work (I'm not sure what the rest of the money was for).  Two-fold question: 1) Is the water claim something I should be worried about from a liability standpoint or if it was fixed properly it shouldn't be an issue? and 2) What could be the reasons the insurance claim is significantly larger than the amount of repair work done?  Just to note there is an existing tenant that has been there for several years (after the water claim though).  

Thanks in advance for all feedback.

Jason