So my tenant calls me and says there's mold in the bathroom. Awesome.

I go by the house to see what the issue is and low and behold, there is in fact mold in the bathroom. So I start investigating the issue. This is a mobile home(modular for the prideful) so I can get underneath it easily. Look inside the crawlspace and I see water dripping from the A/C airhandler area. Walk around to the drain and nothing's coming out. Run home and grab the shop vac and commence trying to unclog this thing. LUCKILY it worked and I got the clog fixed.

Call the ServPro guys to come out and look at remediation. They come out 2 days later and tell me the A/C drain is not my problem. WHAT!!!!?

They tell me the wall in the Laundry room is soaked, getting ready to cave in. This wall is the backside of the bathroom with the mold. Wonderful. The insulation below the house between the frame rails is looking really similar to a whales belly after day 6 of being beached.

My tenant is my sister(I know, I know) and she and her new husband realize this whole ordeal is their fault. When her husband installed the washer hoses, he didn't tighten them down enough. She's called her rental insurance company and they tell her it's a liability claim.

Is this the right course or should I file a claim with MY insurance company?