From the question it says that you are receiving insurance money for a damaged floor from a moving company. You do not indicate what sort of damage was done. Was it a scratched up floor or was it water damage? It depends how badly it was damaged if you are even able to repair it. Or, if a better option would be to replace the floors the claim was made on. I don't know so I can't really give an opinion whether to repair or replace.
Typically, you can spend the money any way you want. However, if there is a duplicate claim on the same floor and the money has already been payed out, then the insurance company will question and probably not pay it. So no it is not required, but the insurance company expects for you to use the money for the claim. What I might suggest however, if the floors can be repaired instead of replaced, you may have enough money to do both.