We review hundreds of prospect’s auto, home and business insurance policies each month for appropriate coverage. It’s hard to believe the disservice the insurance industry as a whole has done to the typical consumer. The average consumer understands deductibles and premiums. Based on working with insurance prospects and clients for over 15 years, very few understand that insurance is to protect you from catastrophic loss and financial ruin. People and agents stay focused on whether they should have a $250 or $500 deductible and what the cost differential is. For most people $250 one way or the other will not create financial ruin. These same people may have $50,000 or $100,000 in Liability coverage. If you are sued for negligence in an auto, home or business accident and someone is permamently injured or dies, the jury awards in these cases can be in excess of $1 Million dollars. If you carry $100,000 liability, they are coming after your personal assets for $900,000. This will create financial ruin for just about everyone.
We recommend that people carry enough liability to build a wall around their assets. Most people who own a home or a business should have Umbrella Liability Coverage. This is excess Liability coverage that sits on top of their underlying home, auto and business insurance policies. This coverage typically comes in $1 Million increments for about $150-$450 a year in annual premium. In addition to providing the excess coverage for damages, it also pays defense cost. So far about the cost of 1-2 hours of an attorney’s time, you can have this extra piece of mind. When people are concerned about the cost for the higher coverage, we often recommend they increase their deductible to offset the cost of the higher liability coverage.
A good agency, that isn’t just peddling policies and trying to compete on just price alone, will be concerned about your protection and offer these higher liability options to you. Independent Agencies have the benefit of being able to shop many carriers to make sure you have the right price for the coverage you need, without having to call around to 10 different companies.
Don’t Sweat the small stuff, be concerned about your catastrophic coverage and not just your deductibles and premiums. Call a reputable agency today for a comprehensive review of your coverage.
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