Your insurance settlement is not taxable income - it is compensation for hail damages that you will have to repair to make yourself "whole"
Since it is not income, you won't get to depreciate or deduct the cost of the repairs - at least up to the amount of the settlement. Any repair costs exceeding the settlement amount may be deducted (or added to the cost basis of the building and depreciated).
From Do I Have to Pay Taxes on My Insurance Settlement?:
Money you receive as part of an insurance claim or settlement is typically not taxed. The IRS only levies taxes on income, which is money or payment received that results in you having more wealth than you did before.
Because the purpose of insurance is to "make you whole", you should generally only receive enough payment to bring you back to the state you were in before an incident occurred. You might receive a substantial payout from an insurer to fix your car, but if the money is only used to make you whole, it wouldn't be taxable.
