Typically, all income received from all sources for any reason concerning rental property, is included as rental income. Period. Then all expenses paid to any vendor for any reason pertaining to the rental property, by the owner, is a rental expense. (except for qualified property improvements.)
In your case, if the payment amount received from the tenant was "exactly" the amount you paid to the insurance company, then the two negate each other out "provided" both transactions occurred in the same tax year. If both did not occur in the same tax year, then you have a reportable transaction... be it additional income from the tenant, or an insurance premium payment to the insurance company.
