Your renter's insurance claim payout might go straight to the contractor, in some cases. We recommend that you get an Insurance professional to look over any agreements that you are making with a contractor before signing, otherwise, you might accidentally take yourself out of the equation by assigning it completely to the contractor. You want to ensure that you are kept in the loop so that you may approve the finished work before the contractor by cosigning the claim to that effect. An Insurance professional can help to make sure that happens so that you aren't left in a bind, accidentally or purposely, by a contractor who no longer requires your approval. Renters insurance payouts are not a big, lump-sum like you imagine
but as long as you are familiar with your policy then it shouldn't be anything to stress over. Ask your policyholder if you have any questions in this regard and be sure to be thorough because a little due-diligence now is much better than a lot of stress and headaches later!