Davids asking an owner to cancel the reservation

[Bearval]

As it happens, I just filed my first-ever claim on a travel insurance policy. It looks like it is standard for the carrier to request proof of cancellation. So in response to OP's question, the request from David's does not seem suspicious.

Insurance companies like to mitigate their losses, I would be leery of doing this since they could come after you if you cancel.