Insurance proceeds received to repair/replace damaged property, per a property and casualty insurance policy, are neither reportable nor taxable on your federal income tax return unless the total proceeds exceed your adjusted basis in the property.
If the insurance proceeds were to replace lost rental income as a result of a casualty (or otherwise), then those proceeds would be reported as rental income (and taxable).
See https://www.irs.gov/publications/p547#en_US_2023_publink1000225377
See also https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/rental-property-insur...
