Was the property rebuilt and "in service" (available for rent) on or before Dec 31 2021?
The insurance reimbursement for the damages is not taxable.
That's not quite accurate. Assuming the payout was for "total loss", you effectively sold the rental unit to the insurance company. Any gain realized is taxable, but I seriously doubt there was any gain to tax. There "might" be taxable depreciation recapture though. That doesn't change the fact that it's still reportable. Note that if you claim any land value for the property on SCH E, you did not sell the land. You only sold the structure. (Insurance does not insure the land, and there is no change in the cost basis of the land.)
