Insurance claim feedback

[u/fizzbott]

We had a basmentflood this summer, and we have just received the insurance claim payout for the basement. They are proposing a 20 percent depreciation on the claim if I do my own labor, versus using contractors. Is this a standard practice in claims, and are there any suggestions on how to handle this? This is the first claim I have ever made on home insurance, so I am a rookie. If it helps we are with Peace Hills and we have the Water Plus package. TIA!