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I assume these payments should be reported as rental expenses - based on your information...
And a such - you would report that amount on schedule E - not schedule C.
You might want to contact the insurance company and ask for correction.
But regardless how payments are reported - the IRS still expect to see that amount on your tax return.
Another issue what deductions you may claim to offset that income.
I suggest to verify in IRS publication 527 for explanations and examples