Kat is half right. Accounting-wise, the insurance check should offset the expense. If the insurance check exceeds the expense, as in you found someone to do the job cheaper than the insurance estimate, the balance is income. And if the repaired asset is in a better or improved condition that the original condition, you should adjust the depreciation schedule, not something the average TurboTax user can do.
If I were preparing financial statements, I might show the full expense and the insurance reimbursement.
Theoretically, if the value of the asset repaired is less after the repair you have a casualty loss, but casualty losses are a bit tricky.
