Depreciation on Insurance Claims

I got an insurance check to make some hope repairs, and there is an amount for depreciation (not included in my payment). Exactly how does that work? Do you only get those funds if your repairs cost more than what you received? For example, if you got a $1000 payment and $300 depreciation, do you have to spend $1300 to get the depreciation? If repairs cost $1150, do you only get $150 of the $300? If repairs vost $1000 or less do you kiss the depreciation goodbye?