If the landlord had insurance, how it usually works is that his insurance pays him and then his insurance company sues yours, whether the landlord wants to do it or not-- his policy would include something called "subrogation," which means his company can try to recover all or part of their costs from you or your insurance.

If you had no insurance, then when they find out how shallow your pockets are they will probably decide to let it go.

When we had a house fire in our rental, our insurance and the landlord's insurance dragged it out for years, and then settled it for next to nothing-- the lawyers just liked collecting their fees to "work" on it.

~Susan