First, did you report the damage to YOUR homeowners insurance company at the time? If so, send it the demand letter and it will handle this with no problem; feel free to say it you suspect fraud. Also inform the condo association of the claim.
Second, did you have homeowners insurance but NOT report it then? If so report this to the insurer now and be prepared to justify why you did not report it earlier, plus your suspicions. Ditto the condo association.
Third, if you had no insurance, you now know the value of insurance. You seem to have at least a partially fraudulent claim and have to deal with it as their insurer presumably has paid, or is planning to pay, for their damages and has the right to go after the wrongdoers, if any.
While the letter is merely a threat, and they'd have to sue you and prove the damages plus your negligence, both of which are not easy (or really worthwhile for them), you'd have to defend if sued, and more appropriately,to try to avoid being sure by convincing their carrier that has paid out the money not to sue, or settle it . That is, as they say in Florida "aggravating". If you don't have insurance, get a lawyer (probably down there) to write a letter for you denying responsibility.
This is intended as general information only, NOT legal advice. You are not my client and I have no obligation of any kind to you. To retain a lawyer I suggest you go to www.AttorneyPages.com.