Sometimes damage occurs during an open house, perpetrator is long gone, the seller may not be aware it happened, and the agent only hears one side. The faucet can probably be repaired by a competent plumber. Sounds like a generic estimate for a full replacement with tile work.
source https://www.inspectorsjournal.com/topic/18810-listing-agent-requests-insurance-claim/?do=findComment&comment=172186
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