If your loss was $5,000 (a $10,000 loss less $5,000 insurance recovery) it would be to your advantage to if your adjusted gross income is under $49,000. If the loss was $7,000, it would be to your advantage to if your AGI is under $69,000. Anything over those amounts will have the deduction limited to $0 due to percentage limitations on such losses.
(Your self-employed and Head of Household status make no difference in the computations.)
