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Insurer avoids claim for water damage after corporate identity change

The owners of the Alexis Manor Apartments decided to convert them to condomimiums.  To facilitate the change, they created a second corporation and transferred title to the building.  They maintained the same insurance policy with Michigan Millers.  When they suffered water damage, they attempted to collect on the policy, but were denied.  The court ultimately ruled that despite taking the owners' money for coverage, the insurer and the agent who sold the insurance owed the owners no duty to procure the proper coverage, because only the predecessor corporation was a "client" of the insurer and agent.  By accepting premiums from the new corporation, the insurer and agent did not incur any obligation to the property-owning corporation.  The case is Belfor USA Group, Inc., v. Alexis Manor Apartments, et al.

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