Thanks Lisa that's what I told him. He thought that maybe a 1099misc would be issued and then he would have to report it on form 4684. The client is disorganized so he's not sure if they received one or not, but I told him that I do not think a 1099 miscellaneous would be issued for that, as I cannot ever recall seeing one for an insurance claim like that.

Ive never seen a 1099MISC for an insurance reimbursement.  I know when we had a wildfire here a few years ago, I did see 1099MISC for people with rentals and the insurance co was paying out lost rents, but nothing for the property losses..