home damage insurance claim

[Maria Iano]

We had a water leak causing damage to our home and I am wondering how  
best to track the expenses and insurance claims.

Our insurance company gave us 2 checks so far, one for contents and  
one for repairs. We have a provision to replace as new. What that  
means is that initially the insurance company gives us a check for the  
replacement/repair cost minus depreciation. After we provide receipts  
showing we replaced the item or did the repair they then give us a  
check for the depreciation they previously subtracted. We don't have  
to do the repair or replacement, and they are happy for us to take the  
check minus depreciation in that case.

We have a $1000 deductible. I actually paid that to the mitigation  
company directly. The mitigation company sent the rest of the bill to  
the insurance company so I never saw that and therefore feel I don't  
need to track it. There are some other bills going directly to the  
insurance company as well, and I'm currently planning to ignore those  
as well.

Meanwhile, how do I record the checks I have received so far? As I pay  
contractors for the repairs and buy replacement furniture, how do I  
record those? The $1000 deductible I recorded as coming from my credit  
card to an expense I set up specifically for this flood. But I wonder  
should the repairs be deducted from the value of the house and then  
replaced as they are done? I'm confused as to how to track all of  
these transactions.

Thanks for any help you can give,
Maria