No Loss No Gain

Right now, I’m taking a property and casualty course. This is my insurance tidbit for today. If you have insurance and someone damages your property and insurance pays you for the claim minus the deductible and you sue the person that damaged the property; the money gained from the law suit belongs to the insurance company. You can’t sue someone for damages that did not occur. This is not a malpractice case. This is the principle of no loss, no gain. So, during our next tornado my neighbor’s tree falls on my house and damages my roof and insurance pays me for a new roof, I can’t sue my neighbor for damages and use the cash to buy a hot tub. Life insurance may create wealth in some cases but health insurance and property/casualty insurance is not intended to be used to create wealth.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: