A lot of home insurance providers won’t cover damage caused by animals, from scratching and tearing to fouling. Very few contents insurance policies will cover for pets.
Some insurers won’t even cover for damage caused my insect or vermin infestation.
However, squirrels are specifically excluded from the vermin classification of some home insurance policies- this is worth looking into, especially if you know there’s a lot of them around your area.
Some insurers may offer an enhanced accidental damage cover policy, which would pay out to help cover the cost of things like pet-damaged sofas.