Please see this answer from DawnC0.
You report the gain from the excess insurance proceeds on Form 4684 which shows up under 'Other Gains' on Schedule 1 of Form 1040. In TurboTax, you can report it under Casualties and Thefts which can be found under 'Deductions & Credits'. For more information on these gains and how to postpone them, see here: Reporting a Gain on Reimbursement
