An insurance broker may be responsible for a customer's loss that is not adequately insured. However, the broker will not be liable if the mistake did not effect the amount of coverage purchased.
A broker obtained homeowner's insurance for a customer. The customer did not correct a number of mistakes that were contained in the application for insurance about her house. The house was adequately insured, but the contents of the house were underinsured. The mistakes contained in the application for insurance would not have effected the amount of contents insurance. The house burned down and the contents were destroyed. The insured sued her broker for not obtaining sufficient contents insurance based on the mistakes made in insuring the value of her property. The judge determined that although the broker had made mistakes, the insured would not have obtained additional content insurance. The claim was dismissed.
Here is the case citation: Strougal v. Coast Capital Insurance Services Ltd.  B.C.J. 107. British Columbia Supreme Court. D.A. Halfyard J. January 22, 2008.
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