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Can my city refuse to pay this claim?

My city’s trash truck accidently backed into the garage on one of my rental properties. There was a LOT of damage to the garage. I filed a claim with the city and they refused to pay it because they said the garage was not permitted. Can they do that? If I file a claim with my house insurance they will probably raise my rates. Any ideas how I can get the city to pay for the damage to my garage?
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