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I learned something new about insurance recently.  I am Trustee on a Trust and the Trust owns a piece of property with a home on it.  The tenant bypassed me and filed claims with the insurance company in 2017 and 2018.  Very small claims, the 2018 had a payout of under $600.

Since the claims had been filed, I could not call them back, if I tried, they would have been listed as claims, but I would not have received monies to repair the home.

But, because of the claims, the insurance company dropped the policy upon its renewal date.

So, now I was looking for a company to issue a new policy.  No insurance company will take the risk on the property.  The insurance companies claimed that there were three claims, so the property was toxic.

The third claim was actually on my actual home from a 2018 claim.  With a different insurance company, under aa different policy and for my home. But since my name was listed in a database under three claims.  I am now toxic for insurance companies.

I still don’t completely understand how two legal entities: myself and the Trust are joined at the hip with insurance claims.  How do my businesses fit into this mix? If there is a tornado that destroys my office will that claims be ignored because of these other claims.  My understanding has been that separate legal entities with separate policies, would be reviewed on a standalone basis…

Apparently, that is not the case.  There seems to be a centralized insurance database that keeps track of all claims and if you are named on the policy with a claim you have a strike against you.

Renewals may be interesting…

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