Why A Personal Umbrella Policy ? Part I by Al Baughman , AIM , LUTCF , Baughman & Associates
12 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 9 Number 2 www . LynchburgRealEstateBrowser . com
Why A Personal Umbrella Policy ? Part I by Al Baughman , AIM , LUTCF , Baughman & Associates
A Personal Umbrella Policy ( PUP ) is an essential component in protecting one ’ s family assets against the unknown . You ’ ll find an umbrella policy is recommended by Insurance Agents , Attorney ’ s , CPA ’ s and Investment Advisors . Whether the loss is a result of one ’ s own negligence or the negligence of others , it can provide a level of protection over and above the underlying limits of liability of one ’ s existing policies . In time of need , the umbrella can be the saving grace between you and financial ruin and it ’ s quite affordable to boot !
Why an umbrella ? The following examples are of real life incidents that could happen to you . ( Reported by Jury Verdicts Research .)
• Children playing with bb guns at a friend ’ s home . One child was injured and in a Plaintiff Verdict , a Compensatory Award of $ 500,000 was made .
• A toddler being watch by grandparents wandered outside and was found at the bottom of their pool . Verdict Pending .
• A child suffered lacerations to lower legs when he walked by a neighbor ’ s house and was bitten by their two dogs . Compensatory award of $ 500,000 .
• A driver rear-ended by an uninsured motorist , which forced the driver ’ s car into other vehicles . Injuries received by occupant of front vehicle . $ 1,875,000 out of court settlement .
In the event that you find yourself in the midst of litigation , found liable and your underlying coverage is insufficient , where will the money for the judgment come from ?
Possible answers … A ) I don ’ t know … wrong answer , you ’ re toast ! B ) I don ’ t have it , all will be forgiven … only in Hillary ’ s World ! C ) The most accurate observation … the crystal ball sees BANKRUPTCY in your future ! Why didn ’ t you take proactive measures ?
As you begin your research into umbrella policies , you will always be correct in acknowledging “ no two umbrella policies are alike ”! Our recent survey of clients new to our agency revealed “ two out of ten clients did not carry an umbrella ” and those that did , were unsure if they had excess UM / UIM ! Why the confusion ? Most agents don ’ t talk about or offer the coverage !
How does one choose the right policy ? Test the water … Call your agent and ask if their umbrella policy includes both liability and excess UM / UIM . If they don ’ t understand the question or react confused , hang up . There are probably other issues within your insurance policies of which you ’ re unaware .
Next call your local Independent Insurance Agency and schedule a Portfolio Review ( aka Annual Physical ). A Portfolio Review is a systematic discovery of exposures one is unaware of and could cost you money ! After all , isn ’ t educating clients on risk exposure ( and offering solutions ) a priority of the agency ’ s code of ethics ? Here ’ s a hot tip … if you expect the same level of service from 1-800 and Internet insurance companies , you ’ ll be disappointed !
If your curiosity is sufficiently aroused , please join us for Part II , No Two Umbrellas Are Created Equal !
To schedule your “ First Time Home Buyers ” consultation , call us at 434 316-0030