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Article: Common insurance mistakes.(umbrella policies)
- Article from:
- Utah Business
- Article date:
- March 1, 2008
CopyrightCOPYRIGHT 2008 Olympus Publishing Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Failure to State Proper Value
"Sometimes people put the value of their assets too high for insurance purposes and sometimes they put it too low," Brown says. "When they estimate the value of their sales or the value of their equipment for a lender, businesses may give a grandiose figure, far above the real value. If they use those same figures in estimating how much insurance they'll need, they'll pay more than they should. On the other hand, if businesses underestimate the value of a building or other important asset, a loss could put them out of business. It's best to be accurate, but estimating high is less dangerous than estimating low."
Brown ...