Not sure what the problem is then? Don't get involved you want it back to how it was so let the insurance company get on with it as their approved contractor will either repair or replace.
I guess the key thing is can the subsidence repairs be made without the windows being replaced? Needs to be an expert opinion recognised by your insurance company. If yes then I think this is why the insurance company are baulking if no then they don’t have a leg to stand on. It sounds like your insurance company are probably thinking your trying to include additional ‘nice to do’ work.
Just renewed mine with SAGA (only just qualify) £258 actually went down from last year! 0 voluntary excess, £150 compulsory excess, Protected no claims, replacement car extension, 6000 miles, SP30, just inside M25.
Nip it in the bud, I’d have a quite word in her shell like........if that doesn’t work a loud word......weird peps habits and how she can think it’s ok to do that ?