Long Story

When hurricane Katrina hit Mississippi in 2005, I had ownership of my mother's house as a life estate. It was in my name, but she had the right to live there for the rest of her life. Unfortunately, the house was mostly destroyed and was underinsured. We received $45,000 for the house, $18,000 furnishings and $2,000 living expenses. My mother passed away 4 months later. Most of this money has been in my savings account ever since, for repairing the house. We now have a contractor working on rebuilding the house and maybe can get it completed for $30,000. How do I handle this when filing my personal income taxes. Should I have reported this last year and will I be penalized for not doing so. I received the $45,000 and $2,000 checks in Oct