As long as you intend to offer this property for rent when it has been restored, you may deduct the cost of maintaining the property, even if this creates a suspended loss for the year. Once you have rental income, the carryover loss will be applied to reduce your taxable income.
Insurance reimbursements are generally not taxable income until you have replaced or restored whatever was covered by the insurance. Next year, you'll apply the insurance reimbursement to the Fair Market Value of the lost assets to determine if you had a gain or loss.
For a full discussion of this topic, including examples, see IRS Pub 547 Insurance and Other Reimbursements
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