I would say that the damage is sufficient that you should be making a claim. Since once a claim is made, the actual damages matter little (it isn't the amount, but the fact that you made a claim at all that they will act on with regard to future rate increases or denial) you may as well hire professionals and get every single thing corrected and replaced.
Every situation and policy is unique; so you should carefully assess your particular issue. But water damage is broadly speaking difficult to remedy unless it's very limited in scope. You may not save any money by doing it yourself; in fact it may cost you much more than making a claim and paying any increased premiums.
There is also the matter of your family's health. You don't want your family getting scabies or having to deal with vermin infestations.
Every situation and policy is unique; so you should carefully assess your particular issue. But water damage is broadly speaking difficult to remedy unless it's very limited in scope. You may not save any money by doing it yourself; in fact it may cost you much more than making a claim and paying any increased premiums.
There is also the matter of your family's health. You don't want your family getting scabies or having to deal with vermin infestations.