By Kathy Lamm

You’ve carefully chosen the coverage levels on your home, auto or business policies so you should be protected against every possible risk, correct?  Unfortunately, even if you have high liability limits, your existing insurance may not be enough to protect your assets from expensive lawsuits.

There has been a significant increase in personal injury attorney advertising in the past few years. Have you noticed that you can’t go more then ten minutes without hearing or seeing an advertisement on TV, the radio, or a billboard? Personal Injury attorneys play a critical role and if you are injured, you should certainly consult a reputable expert. However, all this increased advertising has also caused a large increase in lawsuits, some valid, some not.

According to insurance industry sources*, the national average for payouts in an auto liability case is $500,000 and the average for a property liability case is $900,000. In addition, 25% of all $1,000,000 plus payouts are in the State of California. Even if you are not at fault, chances are you will incur a large attorney bill just defending yourself.

Let’s assume you carry a $100,000 bodily injury coverage limit on your auto policy, and you are ordered by the court to pay $500,000 because of a serious accident. Your auto policy will pay the first $100,000 but where does the additional $400,000 come from? Your home and any other real estate holdings, your vehicles and other personal property, your savings, investments, and other liquid assets are all at risk.

What if you have no assets and your net worth isn’t enough to cover the judgment against you, do you still need insurance? YES because 25% of your future earnings could also be garnished under court order. You work hard for your paycheck, your home and your family so protecting what’s important to you only makes good sense.

Umbrella Liability policies usually range from $1,000,000 to $5,000,000 in coverage and are relatively inexpensive. Re-pricing your existing policies or raising your deductibles slightly can often cover the added cost for you. An umbrella liability policy offers an additional layer of protection over and above your auto, homeowners, condo, or renter policies so you are protected both at home and in your vehicle. You can also add any rental property, boats, motorcycles, or most recreational vehicles.

Simply put, not having an umbrella policy is like jumping out of a plane without a parachute. Ask your current agent about this coverage or feel free to contact us for additional information and pricing.  Once you have an umbrella policy, you will wonder how you ever lived without one!

I am happy to answer any questions you may have. My agency can help you with variety of services such as auto, home, renters, flood, earthquake, personal liability, landlord, recreational vehicle, motorcycle, boat, mobile home, business property and liability insurance, workers comp and medical.

Feel free to give me a call at 866-416-8939 , I look forward to assisting you!

Kathy Lamm
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