The Marshall Insurance Blog

A Personal Umbrella Policy is the best value for your insurance dollar.

What Is An Umbrella Policy?  Do you need one in addition to your auto insurance policy and homeowners insurance?

HERE'S the nightmare: Your car skids. You crash into a Mercedes with a highly paid business executive at the wheel. He's hurt so badly he cannot return to work. A jury awards him millions of dollars and you have to pay it.

You're wiped out financially. The court takes your savings, goes after your home and, for decades, requires you to give up a part of your salary.

For some people such a nightmare could never happen. They have an extra insurance policy, known as umbrella policy , which takes care of their liability for the lawsuits, and medical bills of the auto accident victim - or of the teenage guest who dives into the shallow end of the swimming pool or the deliveryman who trips on the front steps. 

Umbrella policies provide an additional layer of liability coverage in $1,000,000 increments over and above the liability provided on your auto insurance and homeowners insurance policies.  The policy also covers you legal expenses in the event of a lawsuit.

But many people either do not buy the extra coverage or do not buy enough. A recent study by State Farm shows only 12% of insureds have an umbrella insurance policy.  Some do not know about umbrella coverage.  Others have heard of it but do not understand it. Still others decide that they do not want to pay for it, even though the cost is usually between $150-250 depending on the number of vehicles, if you own a second home, rental property, motorcycles  or have watercraft of some kind.   Banks make people buy home insurance to get mortgages, and states require drivers to buy auto insurance. But no one mandates buying a policy that could turn out to be the most important part of your insurance package.

We never think it's going to happen to us.  But remember, personal injury lawyers are making money by suing people. If you don't have enough insurance you become personally liable.

Just give us a call and we can provide you with an umbrella policy quote on the spot.

 Marshall Insurance   704-684-0082

www.marshallins.net

  Most major insurance companies have announced  homeoners insurance rate increases effective Sept. 1

The increases vary from 10-20% depending on the carrier.  Rumor has it that Nationwide Insurance Company has announced a homeowners insurance rate increase of some 20%.  They have also told agents they will discontinue writing mobile home and fire dwelling policies in North Carolina.

How can you save on your homeowners insurance premiums?

 1.  Make sure you have your howmeowners insurance auto insurance with the same carrier.  That will entitle you to the multi-policy discounts.

2.  Increase your deductible.  You may want to consider a $1,000 deductible if you have $500 now.  In any case you shouldn't have less than a $500 deductible on your homeowners insurance.

3.  Be careful before you file a claim,  Discuss the incident with your agent before actually filing a claim.  Many companies even if you just talk to a claims adjuster will set up a claim and even if $0 is paid out this will look like a claim.

4.  Your credit score will effect you homeowners insurance rate.  Insurance rates are computed using information from your credit file.  the better your score the better your rate.

For more information on how to make sure you have the best insurance protection including homeowners insurance go to our website.

Gary Sides, CIC, ARM

Marshall Insurance