You have the right to select any material you want, but the insurance company will only pay up to the value to replace the material you had. Their obligation is to replace and repair what was damaged so the difference in cost for upgrades will become your responsibility

Talk to your insurance adjuster and then the contractor how to address this issue. Usually there will be a recoverable and non-recoverable costs, and the difference between the cost of replacing the vinyl with lets say hardie board would be non-recoverable. It's not a hard thing to do to upgrade but don't assume the insurance will pay for it as a right.

That makes perfect sense, thank you for responding!

we just lost our house to fire and I am looking to hear from people

who are in aimilar situations about thier settlement with insurance

" construction company we hired "

How is it that you think that you can force a company that YOU hired to use materials they do not use? Hire a different company.