It depends The insurance reimbursement on 1099-MISC is reported as Other Income on line 8 ,Schedule 1. Insurance reimbursement isn't usually taxable and is treated as compensation for your losses. If you itemized your deduction, losses are reported on Form 4684 (Casualties and Theft ) on Schedule A (Itemized deduction) and any gain is reported on Schedule D. If the adjusted basis (original price plus any improvement) is less than the insurance reimbursement, it may not be taxable if the money was spent towards replacement of the property.
See,Form 4684
