Why paying attention to details counts when purchasing insurance coverage

I want to start by stating some very basic, but oh, so important advice... "Always carefully check not only the information on your original application, but all details once your policy arrives." I cannot state how even the smallest error could one day create a major issue and reek absolute havoc to your financial well being. Let me share the following example of what can, and often does, go wrong when incorrect information is given to an insurance company. Mr. Smith (fictional name) purchases a three-story apartment building in one of the five boroughs on November 15th, 2012. As required by the bank providing him the mortgage, Mr. Smith had to purchase the first year's insurance premium in full. Well Mr. Smith did as directed, made his insurance purchase and went about his daily living until an unfortunate event occurred. It was on December 11th, 2013 that Mr. Smith was notified a fire broke out in one of the third floor apartments, causing major roof and water damage to his building. Now of course, the "insured" Mr. Smith went to submit his substantial claim when to his dismay, the insurance company proceeded to inform him that his coverage had been cancelled back on November 30th, 2013 at 12:01 a.m. for failure to pay his premium! Totally shocked, he informed them that he had never received a bill that his payment was due by November 15th, 2013, nor did he receive the follow-up 15-day grace period cancellation notification. Now, to my original point of why checking all details of your application and policy are imperative. It seems that upon investigation, Mr. Smith never received his bill or cancellation notice from the insurance company because the mailing address they had listed on the policy was the same address as the apartment building they had insured. This however was incorrect. The correct mailing address should have been Mr. Smith's business location. Unfortunately, this problem occurs way too often, because 90% of the time a building owner or landlord will use a different address for their mail other than the property being insured. A knowledgeable, professional insurance representative should always ask that important question as part of the initial application process helping to avoid a problem down the line. Ultimately, the insured is responsible and must review the final declaration pages of their policy when received. In Mr. Smith's case, the insurance company decided to pay the claim and support the covered damages, because the insurance had canceled within 30 days of the loss. Key to remember is that if the claim had happened January 1st, 2014, Mr. Smith would have been left with a huge loss and no justification at all for the insurance company to cover his loss. In conclusion, don't become a Mr. Smith. Do go to a very experienced insurance professional and always provide and confirm that all information is correct. Eric Leibowitz is a VP, licensed property and casualty broker, life agent, and notary public at Atlantic Agency, Huntington Station, N.Y.