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The client knew they under insured the property; they were trying to costs and felt these people could deal with the quantity of coverage they selected. How they did not know is when this penalty would affect them. Imagine having a claim and realizing you appears to be paying for this coverage, you thought you had, and OOPS.no direct exposure. Guess what? The insurance plan company won't return your premium in this coverage you didn't genuinely have either. Nice, isn't the problem?