How does property damage insurance payout work?

[cpt]

I have had severe water damage to my home. I have highered a pubvlic adjuster to help with my claim. I am a bit confused how the payout workd? In particular, how can I spend the money? I plan on putting it all back into the house. However, I was told that it has to be itemized. For example, say I am given $100 for kitchen repair, and it only costs $90? Can I roll the other $10 into something else? Like more expensive flooring etc.? i was told that is not possible. So if I wanted to "upgrade" one area, I can not use excess funds from the kitchen to do so. am I understanding this correctly? Thanks for any help.

[bednobs]

dunno about in the usa but in the uk, the insurance company woud pay for someone to do the work, rather than pay you the cash