If the payout was for your primary residence then it's not taxable or reportable.
If this was for rental property, then it's included as rental income in the tax year it was received. It's taxability will be offset by the *REPAIRS* it was used for.
More than likely if there was an insurance payout, what it was used for does not qualify as a repair expense. It's probably a property improvement that has to be capitalized and depreciated. If so, that payout will be taxable and it's taxability will be offset by the program when it uses your carry over losses against it.
So depending on the payout amount, it's perfectly possible you will have no carry over losses this year.