I have bought wet fabric in the past and it had a nasty smell that went away when I washed the fabric with my detergent, warm water and 20 Mule Team Borax. It's a natural deodorizing agent that works wonders. It is also good to whiten whites. I used cloth diapers for my kids (youngest is now 16) and those diapers were always white. Good luck with your fabric. Insurance companies are great at collecting the premiums but not so great at paying when they should!