Don't pierce the corporate Veil: This can occur if the entity either is poorly capitalized.

I wouldn't be so quick to dismiss the issue IF there is legitimate concern for someone living in the home.However she came to the conclusion, it still is correct that an accident will mean liability for you. 

If that should occur, you will get notice to cure and you have time to sell, refinance, or work out a deal with the bank.

Obviously you believe something untoward occurred somewhere, I have no idea what that is.

I don't know the specifics but lets say you have a $100k policy on a $200k property and $75k of damage occurs. 

I think that the actual opposite will occur from FB's thinking.

What I've found is that they generally occur in the places that you'd expect, like where a couch sat for a couple of years. 

In 2009, they never did, in 2018 I’m seeing this occur more and more.

The LLC is intended to insulate *liabilities* (think lawsuits) such that if a lawsuit occurs, it doesn't cross over from or to the LLC.

I have paid my car insurance for almost 30 years, and I have been in only 2 accidents where I was at fault.