Home owners insurance claim

Our geyser burst and the house was flooded. We asked for a cash payout as we were going to renovate and didn't see the need to do it twice. They agreed and send us a agreement of loss to sign with our banking details before they could do the payout. After nearly 2 weeks they then said they not paying out cause we in arrears with our home loan but we told them we made arrangements with them which they accepted. When we contact them now they keep on sending us from one person to another or they say they will get back to us which never happens. We always need to phone them to see what is happening. My house is in one big mess and I have 3 girls, one which was born with birth defects and all the dust is affecting her chest. We need to have this sorted out since they gave us the go ahead to start the fixing up and I had to borrow money from family to start but had to stop now because we are running short since we did not receive the payout as per contract signed.