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 Posted: Tue Oct 21, 2008 8:26 am Post subject: Distorted information |
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Hi, I've some doubts. While applying for my home insurance, I didn't actually cover the contents of my home for their right worth..what could be the consequences? Also, please let me know whether a little white lie (just aimed to keep the premiums at bay) would invite problems in the future! Stay-at-bay
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Stay-at-bay
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| Posted: Tue Oct 21, 2008 8:57 am Post subject: |
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Hey stay-at-bay, if you haven't covered the contents upto their true limit you may not receive full coverage for these items at the event of loss. IMO its foolish not to cover the items upto their values.
| Quote: | | Also, please let me know whether a little white lie (just aimed to keep the premiums at bay) would invite problems in the future! |
It may and the insurer may even refuse the claim under such circumstances. Lying to the insurance company is as good as insurance fraud. It may earn you some immediate benefits but may cost huge in the future. |
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jeorge
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| Posted: Tue Oct 21, 2008 9:33 am Post subject: |
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I guess it may also depend upon the type of coverage that you have, like- if you have the actual cash value policy, you may only receive the actual value of the good and not the original value of the item at the time of the loss and since the values of the items, especially for the electronic items the value depreciates fast you may only be entitled to a much lower amount at the event of the loss. In such case, it may not hurt not to quote the actual value of the item.
However, I'd not recommend such act since it can attract complications in processing a claim in the future. |
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RupertWBradson
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| Posted: Tue Oct 21, 2008 9:53 am Post subject: |
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| Quote: | | I didn't actually cover the contents of my home for their right worth..what could be the consequences? |
The consequences are that you won't have enough coverage should a claim arrise...for example you insured your personal property for 10k...you have a total loss of all personal property which is truth is worth about 40k...sorry you get 10k that's it..there are your consequences... | Quote: | | Also, please let me know whether a little white lie (just aimed to keep the premiums at bay) would invite problems in the future! Stay-at-bay |
Depends on the little white lie...if you mean under insuring your property probably nothing...but it could also me material mis-rep on your application, should that be the case...let me lay out the scenrio for you...you lie on your app...five years later you have a house fire that is due to your negligence, in the process of the fire a friend who was visiting is hurt severely...no problem you have 100k in liability coverage on your policy...ut oh, they find the lie...they void the policy for material mis-rep return all your premium to you...now your friend has to sue you, you have no house, your mortgage company wants their money...and you have no policy at all...
Let us know the white lie...and we would be in a better position to let you know if may be considered mis-rep and what you can do about it before it's too late, if that's the case....believe me it's nothing to mess around with...
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Lori
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| Posted: Tue Oct 21, 2008 10:22 am Post subject: |
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| You should always have the coverage you need to replace your loss. You have to think how hard you worked to be able to get the items and what is would take to replace those items if something did happen. I know sometimes its hard in todays economy to pay higher bills and people look to where they can cut corners and save a little. Insurance coverage really isn't a good place to do this. Its really important and there for your protection. |
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fireyone
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| Posted: Tue Oct 21, 2008 11:13 am Post subject: |
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| Quote: | | Also, please let me know whether a little white lie (just aimed to keep the premiums at bay) would invite problems in the future! |
See this policy is actually a legal agreement between you and the carrier. So, in order to be fully applicable each part of the policy needs to be valid for your purpose. That is why it is so important for you to disclose nothing but the truth in your application form.
See, under circumstances that your property gets mortgaged, you should not hesitate to obtain mortgage insurance for it. This would certainly enable you to satisfy your terms and conditions with the lender. Roddick |
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roddick
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| Posted: Tue Oct 21, 2008 11:34 am Post subject: |
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Why deceiving your self of all the benefits for which you'd be paying the premiums!
It is for the best of your interests that you'd need to call up the customer support and share all the mistakes that you have committed during the sign-up process. Once the data reflects your true status, then only your coverage would be applicable.
Regards, Fatman |
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fatman
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| Posted: Tue Oct 21, 2008 11:39 am Post subject: |
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| Quote: | | See, under circumstances that your property gets mortgaged, you should not hesitate to obtain mortgage insurance for it. This would certainly enable you to satisfy your terms and conditions with the lender |
 huh? roddrick where did this come from?
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Lori
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| Posted: Tue Oct 21, 2008 12:00 pm Post subject: |
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Well Lori, as you see..I just tried to sight an example!
For instance, if I have a mortgage on my property and I have not had any coverage (even though it was mandated as per my terms with the mortgage lender), then it also becomes necessary for me to disclose this fact while applying for another coverage. I say this because this one hard fact may just be increasing my risks for the other carrier. Roddick |
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roddick
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| Posted: Tue Oct 21, 2008 12:03 pm Post subject: |
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My friend, insurance carriers would generally count things upon the clause of average. Suppose, you had covered the contents of your home for $20,000 while in reality they were worth $30,000. Under such circumstances, whenever you forward a claim to your carrier, the carrier would be bound to cover you for 2/3 of your claim worth. So, you see why you won't be entitled to receive a coverage worth $10,000.
Thanx, Crossbreed
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Crossbreed
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| Posted: Tue Oct 21, 2008 12:26 pm Post subject: |
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Hey..it is always necessary to get things insured for the correct worth. Understating the risk would lead to thorough claims investigation and an eventual cancellation. On the other hand if you have correctly stated the risk elements, that would certainly hold good on the other associated elements mentioned your application. This would surely enhance your chances of acquiring a fair worth of settlement.
Purpleheaded08
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Purpleheaded08
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| Posted: Tue Oct 21, 2008 12:56 pm Post subject: |
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| Quote: | | whenever you forward a claim to your carrier, the carrier would be bound to cover you for 2/3 of your claim worth |
Don't understan where you got this cross breed...
Ok Roddick I think I kind of understand your point..however a mortage company would only require ins. on the dwelling not the personal property.
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Lori
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| Posted: Tue Oct 21, 2008 1:45 pm Post subject: |
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Really need more info. What items? With our policy, you get 70% of the coverage for your personal property. Now, if you lied about your 60 inch TV and said it was only 42...well, that isn't that big of a deal. However, if you said you had carpet throughout the house but really have hardwood, then you could have a problem if you ever have to rebuild.
If you have a 25K diamond ring and "lied" about that - then obviously, it the ring is stolen, you have a problem because the insurance could not cover the loss.
Details please.
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LifeIsGood
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| Posted: Wed Oct 22, 2008 8:52 am Post subject: |
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BUT if you lied about never having a prior house fire, insurance claim...could but an issue.. 
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Lori
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| Posted: Wed Oct 22, 2008 1:50 pm Post subject: |
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I would hope that the new company would have access to all the available databases and be able to pull up that information..but....in the case they don't, yes.
Was your "lie" about past claims?
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LifeIsGood
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