Tenant Fire & Insurance - How does payment get handled?

[Matt Said]

My tenant somehow started a kitchen fire that was pretty isolated but smoke damage spread through-out most of the unit.  No structural damage other than fire dept ripped down some cabinets and punched through the drywall in a few places.  

Insurance company is saying roughly $28k in damages and has a preferred vendor which would do the work & direct bill.  Has anyone gone through this before?  I'm trying to stay within what is legal but if I hire my own contractors, get a check from the ins company and don't pay out the full $28k, can I pocket the rest?   Or does it not work that way?   Thanks!

[John Mocker]

Matt,
Generally the company will pay you the loss minus depreciation. Then when you show the receipts for the work that was done they will pay the difference. Check with your company but you should be able to use your own contractors. If they are less, I don't think you can pocket the difference.