Building a mosque with haraam wealth
Question

                Is it permissible to use money paid by fire insurance to rebuild the jaami’ mosque? Please note that it is an insurance company in the west.
Praise be to Allah.Commercial insurance is 
    haraam, because it is a kind of gambling which Allaah has forbidden in His 
    Book. This has been explained in the answer to question no.
    8889. 
Based on this, it is not 
    permissible to enter into commercial insurance transactions, whether the 
    insurance is against fire or anything else, and whether it is for the mosque 
    or anything else. If a person is compelled to take out insurance, then he 
    may do that, but he does not have the right to make use of the money paid by 
    the insurance, except that which is commensurate with what he paid. Anything 
    more than that should be spent on the public interests of the Muslims, which 
    includes building mosques. The scholars have stated that this is one of the 
    things on which haraam wealth which does not have a specific owner or whose 
    owner is not known may be spent. 
Al-Nawawi said in 
    al-Majmoo’ (9/330), quoting from al-Ghazali about the disposal of 
    haraam wealth: 
If it belongs to someone 
    who is unknown and there is no hope of finding the owner, then it should be 
    spent in the public interests of the Muslims, such as bridges, mosques and 
    so on which are shared by the Muslims; otherwise it may be given in charity 
    to one or more poor persons. End quote. 
Thus it is known that there 
    is nothing wrong with spending the money acquired via haraam transactions on 
    building mosques. That includes insurance money, whether it is in a Muslim 
    country or elsewhere. For more information please see question no.
    75410. 
And Allaah knows best.