Is this insurance fraud?

If the rental is at fair market value, probably not illegal.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

Not criminal but maybe a violation of the insurance policy, depends if the policy prohibits anything like renting to one's self. My guess is that the insurance company has no say in where the relocation money goes as long as the underlaying claim is legitimate.

The fact that the rent exceeds the monthly mortgage is irrelevant.

If the rent is more than fair market, and the insured concealed his/her ownership of the rental property from the inurance company, that could possibly constitute a breach of the express or implied terms of the policy.

I would strongly urge you to consult immediately with a litigator skilled in this area of the law.

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