Is this Insurance Fraud or illegal in any way?

I purchased my house Apr 2016 For Sale By Owner. It is still in the Property Owners name and the Owner has insurance on the property currently. 6 months ago they filed a insurance claim on the house for hail damage (and is leaking when raining) but has no intention of making the repairs to the house. When I asked him about the roof and the insurance claim he told me I bought the house "as is". I asked him how he could file the insurance claim when I purchased it from him before he filed the claim his reply was that he still has interest in the house since he technically still owns it cause it is in his name still and that he is dropping insurance on the house (after being paid for the claim) and that I needed to get my own insurance on it. I still have 4 more years to pay on the house until it is paid off. Is there anything I can do about the roof or do I have to pay for it out of pocket?