April Showers: Umbrellas are for more than Water

At the mention of umbrellas, you likely think of protection from falling water drops. Your Trusted Choice® independent insurance agent would like to remind you the proper “insurance umbrella” could also protect you from a “rain” of lawsuits. Personal liability claims against homeowners and drivers are increasing in frequency and severity. The question is simple: Are your current limits of liability on your homeowners, boat, and personal auto policies adequate?

And accidentally injuring a single person who then receives a major jury award is not your only risk. Whether an accident occurs on the road, at a home party, or during an outing on the boat, it can result in injuries to multiple people, creating multiple threats of lawsuit or risks of property damage. For example, a personal auto policy liability limit for damage to property of others in an amount of $50,000 may seem adequate if you strike a single vehicle, but what if you are found liable for a multi-car pileup? Suddenly that $50,000 may seem more like a down payment than total protection.

Far too many people are still relying on outdated liability protection limits. Food, gasoline and medical care aren’t the only items that cost more today than yesterday. In 2009 alone, according to the National Law Journal, premises liability awards increased 16.4%, and motor vehicle awards jumped almost 40%.

One solution is to raise your current policy limits as high as possible for your auto, home, apartment, or boat. But another option is a personal excess liability policy or personal “umbrella.”

Personal umbrella policies are cost-effective methods of significantly increasing limits of personal liability. Be careful, when considering this option, that you understand the difference between a true personal umbrella and the often less-expensive alternative known as an “excess liability policy.” If the excess policy is less expensive, it is often because such policies are designed simply to provide higher limits exclusively to a limited number of exposures, such as auto. It is far preferable to consider a personal umbrella, which is designed with broader coverages that extend protection over all of your personal exposures, often even beyond your auto, watercraft, and homeowners coverage. Since personal umbrella coverage can vary in both breadth of coverage, pricing and availability for your personal exposures, Your Trusted Choice® agent always stands ready to offer advice and a comprehensive review of your current insurance coverages and needs.