Mortgaged property and fire

[Rich Hupper]

I do not have experience with this topic and looking to understand the ins and outs. If you buy a rental property with a mortgage and there is a significant amount of damage to the property due to fire so that no unit is habitable anymore. What are you next steps as the owner? I would imagine the mortgage agreement says you need to use the insurance money to renovate the property? What if the owner receives a payout from the insurance company but does not order repairs?

Thanks for your help