It is an itemized deduction, but you don't have to itemize to take the credit. If you have a qualified disaster loss you may elect to deduct the loss without itemizing your deductions. Your net casualty loss doesn't need to exceed 10% of your adjusted gross income to qualify for the deduction, but you would reduce each casualty loss by $500 after any salvage value and any other reimbursement. Look for Schedule A, line 15 and Form 4684.