If you have a mortgage, they require you to name them as additionally insured. 
Therefore, when the insurance money finally hits, they have to sign off on its uses---so they make sure you Rebuild.... or They take it for the unpaid balance of the mortgage if you choose NOT to rebuild

You will not be able to cash the insurance check without the mortgage company signing off

This coupled with the bureaucracy of Los Angeles building dept is going to make the suffering much much longer and painful than most even realize.