Hello,
I have the exact same question and found this thread. We received insurance money for our roof in 2023, and plan to replace it in 2025. As I've consistently read that settlement money is not taxable, considered "reimbursement for losses incurred", and legally is simply said "my money", it seems as though when we do replace our roof, it should be able to be included in our housing allowance. I'm ultimately responsible for the cost of replacing my roof and have purchased housing insurance so that if it is prematurely damaged, I will have financial help to do so. That said, I can't quite wrap my brain around it. What did you wind up doing? Thanks for your help!
