Q Bluebell – provision

My question is provision cannot be recognised if it is insured? Isn’t insurance insured is contingent asset that recognise separately? Are they offset?

For question Bluebell the scenario:
3 hotels severely damaged by flood, need extensive repair and refurbishment at estimated cost of $100m, which has been provided in full. All of the buildings are insured for damage caused by flooding.
Then the suggested answer in BPP:
A provision of $100m has been made for flood damage to 3 hotels.However,since flood damage to hotels is already covered by insurance, it appears this provision was made in error. Hence there is risk that operating expenses are overstated in the FS.