who is entitle to insurance proceeds?

i purchase a home from a friend for a total of $9,000.00 because the house was about to be foreclosed. he stated that he only wanted to save his crredit. the house was 2 weeks away from being foreclosed...we signed a quit claim deed and recorded it with the county....we signed an agreement that i would give him $7,000 upfront to pay the attorney all the fees to prevent foreclosure...in the agreement it explained that i would give him $2,000.00 which was the balance once i sell of re-finance the house...i moved in the property and took over and started paying the mortgage, insurance and property tax every month...the mortgage and insurance was still in his name...during the time i moved in i paid thousands of dollars to have many repairs and upgrades done to the property over time to help the house sell quicker...unfortunately the house was completely destroyed by a fire....we agreed to take the insurance proceeds and just pay off the mortgage which would rid him free and clear of the mortgage and then i at least now own the land....the was a balance left of over $10,000.00 from the proceeds after the payoff but the check was made out in the name of the pevious owners the mortgage was still in his name at the time of the insurance claim...we met & signed an agreement for him to turn over the funds once it cleared his bank....he breach the agreement by not turning over the funds and now i'm taking him to court... who is legally entitle to the insurance proceeds?