So do I need to report this 10000 in income which I got from insurance company
Generally, no. But that's "GENERALLY". If the insurance company does not send you any type of tax reporting document then you don't report anything on any tax return.
If you do get a tax reporting document, then you are required by law to report that income. However, you will work it through the "casualty and thefts" section under the Deductions and Credits tab. You'll report/claim your losses along with the insurance payout there. That way, the payout will not be taxed. But unfortunately, the excess loss the insurance did not cover will not be deductible either.
