you need to get a lawyer and quickly. There are lots of angles here and you need someone who can really review your situation carefully. You say your name is on the mortgage, but is it on the deed to the property? If the bank forecloses on the property, they might forgive the debt and then the IRS could still come after you for the money owed. Lawyers aren't cheap but this is a situation that needs an expert to look it over and give you your best course of action.
Complex question with lots of angles to consider. Is there any equity in the home, what are the terms of the will, is the home vacant? You'll need to get a handle on some of this before you sit down with an attorney to make the best use of your time with them. You will need to consult an attorney to understand all of your rights, obligations and opportunities.
Regarding the insurance, if it's not paid, you may not have any, so it may be in your interest to verify coverage and payment.