Electrical Fire in my Home...how do I deal with upgrades through insurance?

[Cruz G.]

Background:

About 3 weeks ago, I had a fire in my home. I had been renting it out but tenant moved on and I moved in. No one was hurt (thank God). In any event, I had an electrical fire start in the wall while I was away. When I came back, I had pretty much lost everything. Thankfully, there was nothing there that was sentimental (other than the house). Fire marshall and insurance deemed it to be an accidental fire. The insurance adjuster was contacted same day and I was given a check immediately (a few days) so I can find an apartment. I am now in the process of dealing with general contractors to rebuild the house. (It was not deemed a total loss; the structure was considered sound.)

Now here comes my questions:

I understand that insurance will only replace and fix what was already there. I get that. However, before my house suffered its fate, I was severely underwater. Going forward, I am trying to find a contractor that will "work with me" on getting my house to the value that meets or (ideally) exceeds my mortgage. The additions I want I don't think are unreasonable. The roof has to be replaced and the house needs to be reframed so if they are doing that, I figure the roof can be raised a good few feet so I can have cathedral ceilings in the living room. I want to abolish the back porch that egresses from my "master bedroom" and put in its place a master bathroom and closet and make a hallway that leads to a rear egress and the bedroom. Plus a couple of structural changes to the kitchen (make it bigger) and have a HVAC system that will be placed in the attic (instead of the baseboard system). Plus other new-construction niceties like coaxial and Cat-6 jacks. I had high-hats in the house, so recessed lighting won't be new to the home. The numbers I have thus far seem to be well within my dwelling coverage, and even after the franchise-chain folks that did the gutting and cleaning of the house have left my house.

How much of a fight will I have for insurance and are there contractors that will "work with me" on pricing? I haven't gotten a adjuster's report as of yet (I will be going to my PO Box first thing Monday). What other things do I need to consider? I do have funds that I can allocate to the home, but I'm hoping to have most if not all of it come from insurance. I am sure I'm not the first or last homeowner in this situation. I just want to make sure that my 1-story ranch in NJ will see increased value when whoever does the work is done and I'm not so underwater (or not at all).

If I sounded like I was rambling, I apologize...I'm just at my wits end to figure out what to do. I appreciate any and all help. :)