is there ways to avoid paying taxes on the money and keep it legal?

This money is not a profit or a gain. It is the result of a loss of property. Therefore, I don't think it is taxable. You really need to get a professional opinion on this from a CPA or tax lawyer.

This money is not a profit or a gain. It is the result of a loss of property. Therefore, I don't think it is taxable. You really need to get a professional opinion on this from a CPA or tax lawyer.

Talk to a real estate lawyer! They could get you a postponement. You are still required to pay taxes unless your insurance covers the loss. If they do, you could avoid paying taxes or at least lower your payments.