Yes, it does depend rather what they asked for and what was offered. If the resident insisted on staying, despite the place being unsanitary, there's not much the insurance can do. Or the resident said they could handle it themselves and didn't want to involve the insurance.
Unfortunately handling this kind of thing does require being on the ball about making the phone calls etc, and that is something a 90 year may not cope with. It sounds like one of the daughters is on the case so that's good (although perhaps not if they were in hospital), but if they weren't I'm not sure there is somebody who will automatically take charge of managing a case like that. Maybe Social Services or similar? Somebody would have to contact them in the first place though.
(Having dealt with a case like this, there's a whole patchwork of insurance assessors, claims handling companies, approved contractors for cleanups, etc etc, which makes it a quite complicated job to sort out. They are not proactive, you have to phone them up and pester them. And it may not be the case that the insurance will pay all the costs upfront, they might expect you to pay and then claim back later - which is difficult if you have no spare cash)
At the end of the day, if the resident is unwilling it can be very difficult for people to help.
Theo