Whew. I’m guessing that a lot depends on how the property was titled, and how the insurance policy was titled.
But I agree this is a big mess! What insurance company was it?
And yes, your estate lawyer should contact the insurer and let them know there was no probate estate for your father, and that the estate of your mother was probated. And he should provide the necessary documents so the insurance company can make out a new check.
If you still have a problem, please send me an email to Terry@TerrySavage.com with more details.