I am a lawyer in CT but practice in this area.  In order for me to help answer this question i would need to see the homeowner's insurance policy.  Assuming the homeowner's policy cover's the fire, your brother should have coverage for the home.  As for the mortgage payments, the insurance company should pay up to the policy limit to cover the home.  I suggst hiring a lawyer to looking into the policy to make sure that the home is covered and the limits.