What happens if you use money given for a new roof for mortgage payment?

What happens is you committed insurance fraud.

What constitutes insurance fraud?

The Insurance company paid money FOR the expressed purpose of replacing the roof. Not for any other expense.

You submitted a claim for the roof, collected money for the roof... but then don't fix the roof with that money.

Well I haven't actually spent a cent of the money but you got to think, what good would a new roof do me if I lose my home... by the way my insurance co. dropped me after sending me a check that is WAY less than any bids I have received.

Well first you have a couple issues,
1. they can not just send you a check for less than the bids ( minus your deductable and minus wear and age if your policy allows this deduction.

For example, there is a specific square footage, and the cost of material and labor, most roofers will be within 400 or so of each other normally.

Next at least with mine, I refused to accept their price and asked for them to move this to an independent adjuster.
After that I got a fair check, then after the roof was fixed, I received a second check for a small amount that is often held till the work is done.

Some insurance companies make the checkout to you and a roofing company.

But it may not be fruad if they merely paid you for the damage, the issue is that you will now have no coverage on that roof in the future till it is fixed.

So you need to deal with the insurance company property before you spend any of the money

Thanks Chuck... calling my soon to be former agent now.