Insurance Law Lesson 9: Location Location Location

Historically, it was important to give an insurer the correct address so that the insurer could send communications. Realistically, most insurers will communicate at least via email these days. But, it remains imperative to be accurate with the “risk” location.

The risk is the thing being insured. Risk location figures into the premium calculation.

Some places are statistically more prone to situations that can lead to an insurance claim or tend to have higher value claims.

Misidentifying the location of a risk (leading to lower premium) can be a reason for an insurer to refuse to pay out for a claim.

For policies covering multiple properties, there might be a schedule of insured locations.

For auto policies, the insurer usually wants to know where the car is primarily “garaged.”

For liability coverages, there is usually a coverage territory. The coverage territory might be the United States, it might be North America, it might be worldwide, or something else. Check your policy to be sure.

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