If you do have insurance be aware that the insurance company will likely make the proceeds payable to you AND your mortgage holder, and in our case mailed to them and not us. Our house was a total loss after Katrina and they insisted on using the check to pay off the mortgage leaving us with nothing to rebuild. We ended up having to take a brand new mortgage out through SBA for twice the old one (prices having gone up so much) for a much smaller house. At 60 yrs old that really sucks starting over. We were within 7 yrs of paying off our old one when we lost it. Didn't do food stamps, FEMA trailer, or any of that stuff. Went and took out a loan for a 5th wheel trailer which we lived in for over two years while rebuilding and just made do. Ironically, we lost the trailer in the big flood here in March. Sometimes you just gotta roll with the punches and try and keep your head above water (so to speak) as best you can.
My girlfriend found out about that after Hurricane Gustav. She had a huge oak tree in her house. Had Allstate and only owed a small amount to the mortgage co. Check was sent to the mortgage company to pay off and have it canceled. Well the mortgage didn't seem to want to do that and she ended up in Federal court about 5 times. Never got back in her home. Oh and her Allstate agent for over 20 couldn't be found.