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Personal Loan Holder for Small Business

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AlishaH

Junior Member
If I have a personal loan to open a small business and the insurance does not have the lender and the business is a total loss from a tornado, can that lender add him or herself to the insurance policy? The lender is the old owner of the small business that was lost due to the tornado, the lender is not a bank. All monthly payments to the lender for the loan have been made on time and is current.
 


adjusterjack

Senior Member
If I have a personal loan to open a small business and the insurance does not have the lender and the business is a total loss from a tornado, can that lender add him or herself to the insurance policy?
After the loss?

No.

But if you collected from the insurance company for the loss of your business why wouldn't you pay your debt to the creditor? You still owe it.
 

AlishaH

Junior Member
Yes after the loss the lender went to the insurance agent and had the insurance agent add them to the insurance policy after the loss from the tornado. We are going to pay the debt but haven’t received enough funds to pay the lender yet. That’s why the lender went and added themselves to the insurance policy. We are currently fighting with the insurance company because they don’t want to pay out the total amount of the policy because we only owned the business for only a year. There are lawyers and mediators involved to receive the full policy amount or at least enough to tear down and rebuild.
 

adjusterjack

Senior Member
Yes after the loss the lender went to the insurance agent and had the insurance agent add them to the insurance policy after the loss from the tornado.
Sigh.

The information you get here is only as good as the information you give. If you give incorrect information you get incorrect answers.

First you wrote "Can they do it" as if they were going to and I said no because an insurance company shouldn't be making changes to a policy without the consent of the policyholder.

Now you tell me that the lender was able to get put on your policy as Loss Payee without your consent? How did that happen?

We are currently fighting with the insurance company because they don’t want to pay out the total amount of the policy because we only owned the business for only a year.
That doesn't make sense either. You could have had the policy a day and still be entitled to be paid. No offense but I suspect that you don't know anything about your insurance and may be misunderstanding what's going on.

Answer some questions and maybe I can enlighten you on how things work.

Date of loss?
Type of loss?
Dollar amount of damage?
Damage to what?
What kind of insurance coverage do you have? (You can get that from the declarations page of the policy.)
What, if anything, have you gotten in writing from your insurance company?
 

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