The Real Estate Browser Volume 8, Issue 10 | Page 14

14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 10
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 compo-
nent 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 protec-
tion 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.
sees BANKRUPTCY in your future! Why didn’t you
take proactive measures?
As you begin your research into umbrella poli-
cies, 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,
ha ng 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 dis-
covery 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!
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 judg-
ment 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
To schedule your “First Time Home Buyers”
consultation, call us at 434 316-0030