If you are claiming a Casualty Loss on your tax return for the flood damage, you must reduce the amount of your claim by the amount reimbursed by insurance.
Insurance reimbursement is normally not considered income. However, if you later receive more reimbursement than you expected after you
claimed a deduction for the loss, you may have
to include the extra reimbursement in your
income for the year you receive it. However, if any part of the original
deduction
didn't reduce your tax for the earlier year,
don't include that part of the reimbursement in your income. You don't
refigure
your tax for the year you claimed the
deduction.
https://www.irs.gov/publications/p17/ch25.html#en_US_2016_publink1000173595
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
