So I need to go ahead and get it checked out by an inspector? What if their insurance company doesn't want to pay for everything? How do I proceed if that happens?
I've negotiated with insurance companies several times to get justly compensated for auto accidents that were not my fault. In each case, they grossly underestimated the value of my car (the insurance company will likely start with a low-ball offer, just in case you're an idiot). Each time, I told them they were out of there mind...after rejecting the first 1 or 2 offers, I've come out ahead on all of them (roughly even, if you count my time and effort).
I can guarantee that their insurance co doesn't
want to pay for everything. In fact, they don't
want to pay for
anything. But that is mostly irrelevant. You are legally entitled to compensation for all damages. And despite the insurance company having deep legal pockets, they never want to go to court -- that is expensive for them.
First, document EVERYTHING. I mean EVERY little scratch. It doesn't matter that a small dent on the drill press belt housing cover doesn't affect the operation of the tool - you are entitled to have that fixed. Whether or not you choose to have it repair or keep the cash as compensation for depreciated value is up to you. As for the building - you probably WANT the building inspector to say it is damaged past repair. Then the insurance company will have no choice but to pay to rebuild the entire structure.
Adding electrical, if the building does not already have it, will not be part of the settlement (unless you are even a better negotiator than I). However, may be able to negotiate with the contractor to get that thrown in on the job.
Also, be sure to document your time spent on this -- you are entitled to compensation for that, as well. Don't hire an attorney, yet. But negotiate
hard to get what is owed to you.
If I were in your shoes, I'd be looking at this as a great opportunity to get your shop upgraded, rather than a disaster. I'm not advocating being dishonest - just taking what life gives you and making the best of it