The way insurance proceeds are split with respect to a home that is an asset of a person who has passed that has been destroyed is that the settlement check is then placed as an asset of the estate and its distribution is made per the terms of the Will or trust after all expenses of the estate's administration are made.If you paid the premiums for the insurance policy yourself, you would be entitled to reimbursement for the premiums before a distribution of the estate is made. I suggest that you consult with a Wills and trust attorney further about your question and to review documents pertaining to the estate that you are writing about.