Usually the contractors referred by the insurance company have been checked out and are pretty good. Some companies have preferred programs with contractors and will actually warranty the work done by them. Other simply have a referral list of contractors they work with but you actually sign them up. Insurance companies don't like complaints so the bad contractors are usually weeded out. Most of the contractors have done work with multiple insurance companies for many years and are very familiar with the insurance pricing and estimating guidelines.

That being said hardwoods are very difficult and even the best contractors have trouble with them. If you know who installed the floors originally they can be a good option. If not make sure you clarify exactly what you are looking for. I see many hardwood jobs go sideways because homeowners and contractors are not on the same page. Verify what color you are looking for and what sheen you want. Some homeowners expect a glossy finish and it comes back with a matte finish. Some floors come back with lots of swirl marks. Verify who's going to clean after. Are they using a standard sanding system or a dustless one to cut down on all of the wood dust? Ask for references from the contractor. Also expect to be out of the house for a number of days if it's a big loss and expect to have have all of your furniture moved as well.

Don't be afraid to ask lots of questions. Having hardwoods done can be a much more difficult process than it looks.