Do i have to use an insurance payout to repair damage when i am going to sell the house and have reflected it in the price?

If you own the home free and clear then no,, you do not have to make repairs.

If you still have a mortgage on the home then yes, the terms of your mortgage contract require you make the repairs regardless of whether the home is for sale or not.

When there is a mortgage involved, the decision to repair or not is our of your hands. it's up to the mortgage company.