Is this Insurance Fraud?

We bought our townhouse in February of '06. Two months later we were assessed for storm damage that was caused in September of '05. We have tried to fight this assessment for a year without hiring an attorney. There was something pending at the time of our closing, but there was not an amount written. No one would take responsibility for this assessment. Our homeowner's association put our house into foreclosure unless we paid the assessment with the added fines and fees. We decided to pay the amount to "save" our house. One of our last options was to turn our claim into our Title Insurance Company and our Homeowner's Insurance Comp. Our Title Ins. Company denied our claim but offered a settlement of $2000 (about half of the total claim) only if we signed a release form stating they would not be liable for any further assessments. We agreed. At last minute our Homeowner's Insurance offered to pay the actual claim. Would it be illegal to accept money from both companies?

I think you should get a real estate attorney to handle this for you. Something smells rotten.

I would say yes.

Why did you even let it close with that pending. You could have held the old owner responsible for the fix up. If you knew it was damaged why did you buy it? Seems to me you screwed yourself.

Not really, get all u can when u can.

That is insurance fraud. You can have one or the other, but not both.

You should tell the Homeowner Insurance company about the other settlement, then they may, hopefully, pay the remainder. You would not be entitled to receive twice for the same loss, so the $2000 would, at the very least, be deducted from the other amounts.

As to whether or not it is fraud, you would need to read the policies and claim forms very carefully.

To summarize: You are not entitled to received the full amount from one insurance company and $2000 from another company. It may or may not be fraud.

No. One is a claim concerning title to the property. The other is a claim for damage to the property. There may be subrogation clauses in either or both of the policies requiring you to remit amounts you receive from other sources.

yes. Insurance is designed to "make you whole again" or put you back where you were. In this case, pay the money for the assessment. If they end up paying more than what you owe, or more than you have paid already it is theft as you are not entitled to more than the assessment ( and fees etc ).

I would say if you have to ask you already know the answer.