We had a house fire last year and are wondering how the contents money should have been divided.?

Question

My mom and her exboyfriend were buying a house together. Last year the house caught fire. The insurance was in both of their names and when the check came for the contents my mom put it into her account and used it to rebuild the house. Her ex didn't own anything in the house and the stuff that he listed on the insurance forms is fine. He is now sueing her for atleast half of the money. She has used most of it (and has reciepts for the materials) to rebuild. We haven't been able to completely finish the house because he had her account frozen. Is he entitled to anything when he didn't lose anything? He wasn't even living in the house at the time. She is really upset about it and I am looking to reassure her so any information would be great.

Answer 1

Get a lawyer, have him/her make two phone calls.

First to the lender, If there is a mortgage on the house.

Mortgages have a clause that requires that insurance payments for losses to the house either be used to repair the damage or used to pay down principal.

Second to the insurance company. It's possible they might consider (or be persuaded to consider) the ex bf taking any of the money for a loss he did not incur as Insurance Fraud. They take that very seriously.

Answer 2

Well maybe you can threaten to turn him into the insurance company for fraud, but then Mom might be implicated and even if she wasn't, she would lose some money. You can try and threaten him with insurance fraud and maybe he will drop the whole thing.