How does the insurance claim payout work if I hire my own contractor for repairs?

I have received the approved estimate, but I have not signed it yet. The insurer has agreed with me that there are errors in the adjuster’s estimate, so I understand that revisions will be made.

Based on the current estimate, the ACV payment is approximately 6/7 of the total amount, while the remaining recoverable depreciation is about 1/7. Since most of the cost is labor rather than materials, I believe it may be possible to find a licensed contractor who can complete the repairs at a lower cost.

If I hire my own licensed contractor and the total repair cost comes in slightly below the approved estimate, would I still be eligible to receive the full remaining depreciation amount after the work is completed?

I also have a mortgage on the property, so please let me know if that affects how the payments are issued.

More generally, if I am able to complete the repairs at a lower cost, for example, by selecting more cost-effective wood flooring than previous one(I don't plan to keep the house for long term anyway), would the final payout still be based on the approved estimate, or on the actual cost incurred?

To be clear, I intend to hire a licensed contractor for the work. I may also consider purchasing some materials myself if that helps reduce costs.

I’m open to using the insurer’s in-network contractor. However, the current adjuster—who may also be the contractor performing the repairs—has been unresponsive to my questions regarding the estimate. As a result, I’ve had to go through the insurer to seek clarification.

I’m not satisfied with the quality of the adjuster's estimate (I can easily point out some errors) or the slow pace of the process, and I’m also concerned about the lack of responsiveness. Additionally, my understanding is that in-network contractors are assigned based on availability rather than customer reviews, which makes me hesitant about proceeding in that manner. It may be better for me to select a contractor who is a better fit for my needs and communication expectations.