Can I use insurance money written to me and the mortgage company to do repairs on the home to pay off the house ?

To keep you insured the insurance company may require that the repairs made.  That does not mean you must make the repairs, it means that if you do not, the insurance company will no longer provide you with insurance coverage. If they continue to insure you in the unrepaired condition, they will only be insuring for your "next" loss back to the unrepaired condition of the home at the time of the loss.