The contractor you use for a bid doesn’t have to the final decision you make, but you will need the proposal because the home owner insurance company needs them. If your proposal bid is higher, the better.
Hopefully you have drywall nails in there and not screws. Remove insulation from that same area. Feel above for dampened insulation. If it is damp, go 2′ more up. Once you are sure you have all the wetness gone and are down to the studs, spray with bleach. You don’t want mold to grow. Make sure your windows are open.