You can only claim the amount that was NOT paid for by insurance.
It is difficult to claim a casualty loss because you have to meet a tough threshhold. Only the amount of a casualty loss that is OVER 10% of your adjusted gross income can be counted toward your itemized deductions, and even then you must subtract $100 from that amount. If your loss was covered by insurance, it is very unlikely that the amount of your deductible would be enough to count as a deduction. If you want to enter your casualty loss, go to the Federal>Deductions and Credits> Other Deductions and Credits>Casualties and Thefts.
I need clarification - I had a basement flood 3 years ago and had losses. When I calculated the casualty losses for my 2016 return, the total losses didn't meet the threshold for deduction. In 2019 I was part of a class action suit that was settled with our municipality. The proceeds covered all of the personal property listed on my 2016 Form 4684, but NOT some of the capital repairs (i.e., flooring, paint, etc.). Do the proceeds from the settlement of the civil suit need to be declared as Other Income if I can show that the total cost to me to bring the basement back to like condition (i.e., not an improved status)?