Do insurance conpanies pay for the demolition process?

I'd say ask the flood adjuster, if that's what the damage is from.

Your insurance company should pay the fair market cost to remove and replace all building materials. If you did the demo that she be included in their repair estimate. They also need to pay you the fair market cost to remove your personal property in order to access the building materials - like moving your furniture out of the way to get to the flooring. Don't forget the cost to remove baseboards too. They are also required to pay for debris removal if you incurred that cost. If you moved it out to the curb and the city or county picked it up, you can't claim debris removal.If you have possible residual mold damage to structural members they should pay for the encapsulation of all wood studs, sill plates, joists, furring strips, etc.

I should qualify this by saying that this is not covered by your homeowners insurance company if the damage was from rising flood waters. The National Flood Insurance Program covers that IF you have a flood insurance policy.