I would suggest you get an attorney involved, but for more than just the problem getting reimbursed. Someday when you go to sell, you will have disclosure duties regarding the house, and you need to make sure you do this right. One thing I know you will want to have is an engineer's report to document that it is structurally sound and properly repaired.
I have a client and friend who actually wrote a book on all the things one should do in rebuilding a house after a major fire. He is a really smart, detail-oriented guy and his book has been used by a number of folks (including the Mayor of Columbus) in helping know what to do in rebuilding their homes after major fires. If you would like a copy of his book, let me know and I will see if I can get it from him in order to forward it to you.
You may well want to consider hiring an insurance coverage attorney at this juncture. You can scroll through Avvo's Find A Lawyer webpage or the Mahoning County Bar Association has an attorney referral service that may be of help to you: http://www.mahoningbar.org/public_resources/lrs_public/lawyer_referral_public.htm .
This response is general legal and business analysis and not legal advice; thus, other attorneys may analyze this issue differently, particularly if there are undisclosed facts. I am licensed to practice in CA, but I am not your attorney and this response does not create an attorney-client relationship between us. Please review Item 9 of avvo.com’s terms and conditions, which is incorporated by reference as it if was reprinted here in full.
Yes, consult with an attorney experienced in the area of homeowner claims in your State. Most mortgages have a provision that requires insurance proceeds go to them. They have this clause in the mortgage solely for their benefit. If the homeowner is behind in payments they then apply the benefits to the arrearage.
If there is no arrearage, then they are simply supposed to be the conduit for issuing the payments to either you and/or your contractors doing the work. A letter from an attorney may be helpful and even if you have to pay to have this done it would be beneficial.
One other thing, you say you've been dealing with the mortgage company almost daily on this issue and I assume this has been by telephone. While telephone communications may be an easier way to communicate, it does not provide a way to document what was said or promised. From here on out I would recommend that all communications be in writing and/or you confirm the substance of each telephone conversation in writing. E-mail is an excellent way to do this. I'm including a link to our web site which has general info on homeowner claims. You may want to rev'w this. Good luck.