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  • Why Cheap Insurance Means No Insurance

    Mar 26, 2018
    4
    Why Cheap Insurance Means No Insurance
    Why Cheap Insurance Means No Insurance
    in Insurance Claims, JT Legal Group Blog

    Why Cheap Insurance Means No Insurance

    A lot of our clients purchase insurance at very low rates. The way it works is an insurance broker will find our clients the least expensive option. Usually, the least expensive option in cheap insurance means certain things are not covered.


    Endorsement
    In the case of our client, he obtained fire insurance. The insurance contained an endorsement which required fire sprinklers. The endorsement is similar to a good drivers’ discount, where if you have certain things like fire sprinklers which minimize losses from fires, then fire insurance is less expensive.


    Refusal
    The problem is, our client did not have fire sprinklers in his building. When his business burned down, his insurance company refused to cover his loss, which was over $1 million, because our client said he had fire sprinklers when he did not.


    In Conclusion...
    The lesson learned is do not buy cheap insurance. If you want to insure your loss, make sure you buy appropriate coverage. Otherwise, what is the point of buying insurance to begin with?



    -- An article by our Partner Attorney, Michael Avanesian, ESQ.



    Your free, no-obligation consultation with a reputable Los Angeles Insurance Claims Attorney regarding your unique situation is available by calling:

    888-529-3111 Monday-Friday, 24 hrs a day, 7 days a week.

    — Michael Avanesian, Esq.
    [NOTE:] Attorney Advertising: Nothing posted on this blog is intended, nor should be construed, as legal advice. Blog postings and hosted comments are available for general educational purposes only and should not be used to assess a specific legal situation. Nor does any comment on a blog post create an attorney-client relationship. The presence of hyperlinks to other third-party websites does not imply that the firm endorses those websites, their contents, or the activities or views of their owners.

     
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