I agree with @Adirondackwannabe.
I’m in the process of replacing my roof, and State Farm depreciated it by 40%. That means I got an immediate check for 60% and the balance when I either:
a.) sign with my (company approved) roofer or
b.) my roof replacement is completed by another roofer.
I don’t understand how insurance is paying enough to replace the roof, and pay the deductible plus a profit of a couple/few hundred dollars. Oddly enough, I declined to bring that to the attention of the adjustor. ;-)
But, to your question, they’re not dictating how I spend the money, only that I show proof that I paid someone to replace the roof. You would probably be in good shape because it would be difficult for the insurance to find a ‘comparable’ property to put you in. If you were in town and they could buy a similar property for ½ the cost of insured value of your current home, you’d have a battle on your hands.
In 10 years my home insurance had inflated the value by ⅔. Meaning (for example) a $100,000 house is valued at $175,000 in 10 years time, even though it has had negligible appreciation. The danger in that is that if you lose your home and the insurance company can buy you the same or better for $115,000, they will. So you’ve paid high premiums for nothing.