One of the most important actions a person can take to protect against the loss of property is to buy insurance. It involves taking time to find what type of coverage is needed, how much coverage is necessary, what insurer to deal with and whether one can afford adequate protection. Unfortunately, insurance consumers have a serious, additional concern….whether the insurance offered is legitimate.

Insurance consumers are frequently being lured into buying policies that turn out to be fakes. The counterfeit coverage is typically for auto and home

coverage and the practice is particularly concentrated in areas that have suffered catastrophes. Fake insurance is also being offered in areas where legitimate insurance has traditionally been expensive.

Sadly, the coverage is often discovered as fake after a loss has occurred and there’s been an attempt to file a claim. In such instances, a duped consumer has not only lost the money paid in “premiums,” they now face an uncovered loss.

If you are searching for insurance, it is important that you do so carefully in order to make sure that your purchase is made from a reputable source. The most prudent action is to ask questions and avoid any situation that raises suspicion. Signs that an opportunity is fraudulent include the following:

• • Insurance premiums that are much lower than what is typically offered

• • Companies that downplay any requirements about eligibility for coverage

• • Sources that attempt high-pressure to hurry you into making a decision

• • “Insurers’ that ask for cash (either down payments or full payments)

• • Lack of information about their coverage

• Applications that include requests for unnecessary financial or personal information

Your best protection against a high-risk scam is to seek out a qualified insurance professional.

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