It's not likely USAA will go insolvent. Even if I was in a hurry for the insurance money I would wait at least a few weeks instead of being the first one to settle. Construction costs in LA will go through the roof and there will be empty lots for years. Selling in the near future would likely get a low price but is it worthwhile to hold an empty lot for several years to get an extra couple 100k when the neighborhood has been mostly rebuilt? The best decision about timing will be very different for different people.
The bit about getting more money if the house is rebuilt sounds familiar and I expect that is standard.