Hey there, @jenniferlabadie,
It's great having you here in our forums. I can help you account your asset in QuickBooks Online.
First, let's create a Bank Deposit for the Insurance money you receive. This way your bank reflects what the insurance company paid you. Follow the steps below:
Once done use a journal entry to remove the Liability for the asset. Here's how:
Under Other, select Journal Entry.
If you're unsure which account to use, I'd recommend checking an accounting professional for further assistance. They are experts on what correcting accounts to use for your business type.
Lastly, you can receive the customer payments for the rent or write off the bad debt if needed. Here are some references I've added to guide you with recording customer payments:
That's got it. If you have any questions with the steps, please let me know by clicking the Reply button below. You have me here to help you anytime. Have a wonderful week ahead!