Leaking Balcony denied

Hi all. We had a bad wind/rain storm and suffered some damage. We lost a bunch of shingles which they replaced our roof, but there was also water damage. We had water leaking into our dining room from the crown molding and behind the walls. Contractor says it’s the balcony that is causing the damage. We were told if this had been going on for some time without knowledge, worse case scenario, the outside wall of the house may need replacement as well. Between the exterior wall and the balcony we are looking at roughly $20k+, depending on severity of course.

We were approved for the wall to be replaced due to the water damage however, insurance is not covering the repair of the balcony and won’t if the exterior wall needs replacement. I am not understanding why they would fix the water damaged interior wall, but not the issue exterior. As well as, why not the balcony. It’s going to just leak back into the wall if not corrected. We just don’t have the funds or the means to cover the work. Has anyone encountered this before? Any advice on how to get both covered? Any info would be greatly appreciated!