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The whole insurance claim process can be confusing. Its true that your insurance company approves the scope of the repairs and provides the claim funds. But your contractor (not the insurance company) is responsible for performing satisfactory repairs, and you the homeowner (not the insurance company) are ultimately responsible to make sure that your contractor gets paid.
A common question people have is 'what do I do with my deductible?' Your insurance company will 'deduct' your insurance deductible from the total claim funds that they pay. If you have a total claim of $10,000.00 and your deductible is $1,000.00, your insurance company will pay $9,000.00 and your $1,000.00 deductible is to be paid by you directly to your contractor.