there are some tricky rules but yes it is deductible. it's reported on form 4684. there are certain elections that need to be made. use the casualty and theft worksheet and review rev proc 2009-20 (scroll down to get to it) to see if you want to use it
https://www.irs.gov/irb/2009-14_IRB#RR-2009-9
section C of 4684 is when you use the Rev Proc
read page 7 of the 4684 instructions
https://www.irs.gov/forms-pubs/about-form-4684
