keep it. You never know when you might need it.
What! Insurance pays for financial losses. I don't understand your question.
You can either borrow money or what to get the repairs done until you have your deductible.
This will depend in part on what the claim is for. If it was a reimbursement of previously paid expenses, then you have already "spent" the money. If it is pre-payment for services, you will need to spend the money on the services specified. If it was a claim settlement for damages or lost property, the insurance company doesn't care what you spend it on, whether it is replacement of your valuables or something else entirely.
The legal right to the money requested in the claim goes to the person who is named in the policy. Regardless of who was paying the premiums.... (even if the sons made the claim to fix something) Mom has her name on it she will be named on the check and will be the rightful recipient to the claim.
No!! It is highly illegal for you to do this. When you make a claim on you home insurance for something that was the fault of your contractor you sign over all subjugation rights against this contractor to your insurance company. This means that if your home insurance pays any part of this claim you give them all your rights to go after the contractor, which they will do. They will go to the contractor and their insurance company to get reimbursed for any amount they paid plus costs. In most states it is considered insurance fraud for you to even try to collect damages from two places for the same claim.
They should not drop you before a claim is settled. If they have contact your state department of insurance and file a complaint.
Yes you can withdraw your claim, but once reported, the damage and the claim filing are still on record.
Once you become the legal owner of the home and something occurs that is covered by homeonwers insurance then it is your insurance that must cover the claim. In the event the incident is not covered by your insurance policy and you feel that a material misrepresentation was made by the seller then I can only suggest getting the advice of an attorney.
You don't need too. Just make your loss claim on your own homeowners insurance policy. If your neighbor is liable for your loss then your Insurance Company will subrogate the matter for you.