Can insurance company for a home owner to rebuild?

Its going to depend on your insurance and whether or not you have a mortgage.

If you have a mortgage, the bank must be made whole first. If you have the house rebuilt then the mortgage lien automatically applies to the new/rebuilt house and nothing changes with your mortgage.

If you just take a check, the mortgage is going to need to be paid off first, and you will only get what's left. Then you own a damaged house with some money in your pocket but no place to live. If you try to rebuild with the insurance money there's a risk of the repairs costing more than the settlement and if you try to sell as-is investors are going to expect a huge discount on the price (far more than the cost of repair) so they can make a profit on the deal.

So your best option is almost always going to be to let the insurance company pay a qualified contractor to rebuild. If you want to move when its all done, you can sell a newly built/rebuilt move-in ready house for top dollar and there's no risk to you if the rebuilt goes over budget because the insurance would be on the hook for the extra cost.

I think you can choose a check instead but I've never lost a house. And if you owe on the house, the check goes to the lender who may cut you one for the difference.

My insurance just says if it burns down and it's not my fault they either rebuild or give me enough to buy another house of a similar value and the cost of a hotel in the meantime. You have to check your individual terms.