Suzie,

My mother had exactly the opposite experience in 2004 with a plumbing
leak. The insurer replaced or fixed all of the water damage but would not
fix the leak itself.
I think that the OP should get his carpet and other damage fixed
professionally. The question of a "deductible" isn't important since the
plumber or his bonding company will make good on that. He needs to notify
everyone, take some pictures, mitigate his damages, and get them fixed.

Dave M.