I knew almost nothing about contractors and remodels before this situation so any information is helpful.

I have an insurance claim to replace my kitchen cabinets. My insurance approved $8000 for the cabinets, but the contractors (partnered with the insurance company in some way) say that my material budget for choosing cabinets is $4500 because labor is $12000, and profit is $2300. Is this at all normal? Is there anything I can do? It's also $4500 assuming assembled cabinets or labor will go up. They are in my unit to do this work and many other repairs taking 6 to 8 weeks.

I have to work with this company or I have to pay them to choose a different company. (I signed something I shouldn't have).