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Monday, January 27, 2014

Don’t get burned - Get an umbrella instead! Insurance!!

According to the Oxford Dictionaries, the term “liability” is defined as: the state of being responsible for something; especially by law.  The finance journal defines “liability insurance” as the promise of reimbursement as protection from claims arising from injuring others or damaging other’s property. One of the most famous liability lawsuits you may be familiar with occurred in 1998 when a woman sued McDonald’s Restaurants for suffering third degree burns after spilling a hot cup of coffee purchased from a McDonald’s restaurant in her lap.  ABC news called the suit “the poster child of excessive lawsuits”.  The victim’s attorney sought $160,000 to cover medical expenses and $2.7 million in punitive damages.  Sound outrageous? Well, when your pockets are as big as McDonald’s, this type of threat is highly likely.  But, how does this apply to you?  

According to Peter E. Lang of High Tower Advisors, most clients’ largest concern is “an event that’s unlikely to occur, but if it occurs can disrupt your financial future forever, even for some who own a home and little else of great value.” In today’s litigious society sometimes even $500,000 in liability insurance coverage is not enough.  The important question is - how do you know if you have enough coverage? You have liability coverage on your home and automobile insurance policies, and you feel comfortable with that, but wouldn’t you feel more comfortable if you had an extra blanket of protection at a reasonable price? Unless your pockets are as deep as McDonald’s, you could really feel the burn of an excessive lawsuit. 

A Personal Umbrella Insurance Policy may be the answer you are looking for! The term “umbrella” refers to how the policy shields your assets more broadly than your primary insurance policies.  Personal Umbrella Insurance Policies protect your assets and future income in addition to your primary insurance policies, but it is not the same as excess insurance, as they only go into effect when your primary policies are totally exhausted.  An umbrella policy can become the primary policy on a risk in certain situations.  For example, Mary was involved in an auto accident where John ran into the back of her vehicle.  Mary suffered severe injuries and damage to her vehicle.  John has $100,000 in liability coverage on his auto insurance policy, but Mary’s total claim against him adds up to $250,000.  This leaves John responsible for $150,000 above and beyond his auto insurance coverage.  What are John’s assets? Are they at stake? If Mary gets the right attorney, they could be, unless John has an umbrella policy to further protect him!

Aside from the logical precautions of actively doing your best to avoid hurting others, purchasing a Personal Umbrella Insurance Policy can prevent a devastating blow to your financial future.  A typical umbrella policy is sold in increments of one million dollars and usually costs less than $200 per year in premium.  It provides additional liability coverage above the limits of your homeowner, auto and boat insurance policies.  Sometimes, umbrella policies even provide coverage for claims that may be excluded from your primary insurance policies such as false arrest, libel, slander and more.
To learn more about how much you have to lose and what an umbrella policy can do for you, meet with a Trusted Choice insurance agent at one of our 3 convenient SouthGroup Insurance locations today for a full insurance review.  Don’t get burned, get an umbrella! 

Your Trusted Choice Insurance Agent stands ready to assist you. We help you through the maze of insurance coverages, carriers, and premiums, and we find the best personal and business coverage for you at affordable rates. We help you save money on insurance --- and we save you time!  And remember, when it comes to insurance, one size does not fit all.

We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast / ,
SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Brittany Jones, Wendy Johnson, Denise Russell, Melissa Moran, Alex Treutel, Susan Monti, Anne Gillam, Ashlie Moody, Michael Reso and Whitney Zimmerman at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: , phone:228-466-4498, fax:888-415-8922,  FaceBook, or Twitter !
We have 3 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi, 5400 Indian Hill-Diamondhead, and 412 Hwy 90 Ste 6-Bay Saint Louis, MS. We write coverage in 40 different states and can assist you with Mississippi insurance, Louisiana insurance, and Alabama insurance and many other states.
Thanks to Susan Monti for her words of wisdom!

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