ARE YOU COVERED?

An Open Gate Leads to Heartbreak

 

The Mariani family was in their front yard when their 81-year-old neighbor, Stewart, came across the street for a quick chat. The family didn't realize that their gate was unlatched and out came their gregarious golden retriever, Gus to greet him.

As Stewart bent down to say hello to Gus, the dog jumped up and knocked him over. Stewart twisted and fell backward, breaking his arm and hip and hitting his head on the sidewalk. 

Stewart was rushed to the hospital, where he ultimately succumbed to his injuries. 

The family's standalone personal umbrella covered Stewart's medical expenses and ongoing litigation once their underlying homeowners insurance was exhausted.

Claim: $1 MM

                    Contact us for all your Insurance needs! (321)725-1620 
                                              Bob Lancaster Insurance

Serving Florida since 1964

 

 

When – and Why – You May Need Umbrella Insurance

 
Living in a busy world, our lives constantly intersect with the people around us, and some interactions can have surprising consequences. It is increasingly important to make careful insurance choices to protect yourself from the unexpected. Because, even if you carry excellent coverage with high limits, situations can still arise that leave you liable for costly damages exceeding what any single policy can cover.
This is where umbrella insurance comes in. An umbrella policy sits over other policies, such as home insurance, auto, boat, etc., and provides additional liability coverage if the underlying policy maxes out during a claim. Here are a few cases when an umbrella policy is essential:

1. Passenger Injuries
   Driving around with friends, it can be easy to get distracted and go a little too fast. If an accident occurs and passengers are seriously injured, medical expenses can add up quickly – potentially totaling more than what an auto policy would cover. Without an umbrella policy, any liability expenses beyond the auto policy limits may be the driver’s responsibility.
    
2. Social Media Mishap
   With so much communication happening on social media, conversations with friends are now in the public eye. Picture a teenager getting angry at a teacher – no stretch of the imagination there – and venting online. Depending on what’s said, the teacher may decide to sue the student’s family for personal injury after the blow to his/her reputation. Cases like these have paid more than half a million dollars, far beyond the standard liability limit on a home policy. An umbrella policy may step in to cover the rest of the claim.
    
3. Dog Bites the Neighbor
   Responsible dog owners take the time to train and socialize their pets. However, even breeds that aren’t typically associated with aggressive behavior can suddenly act out, despite our best efforts. If a pet badly injures a neighbor, between medical bills and future disability, the cost can go into the millions. Most home insurance policies top off at less than $500,000 in liability coverage, leaving a huge gap.
    
4. Faulty Furnace
   Being a landlord is tricky business. Even with the most responsible management, rental properties can be a minefield of possible claims. If a furnace starts malfunctioning, a tenant may sue for brain damage caused by carbon monoxide poisoning. While all landlords should maintain their property and make repairs as needed, having a safety net in case of a major liability claim is equally important.

While most people don’t stop to think about everything that can go wrong, insurance professionals very often see the worst case scenarios, such as the examples above. I know they sound like horror stories, but, trust me, they can be a lot worse if you don’t have enough coverage in place. So, work with your independent agent to select the insurance you want to help protect yourself and your family in these and plenty of other scenarios.

                                 Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                            Serving Florida since 1964

Do You Need Umbrella Insurance?

Umbrella Coverage Explained

One of the most certain things in life is, certainly, uncertainty. Your dog could bite the neighbor’s kid. Your teen driver could hit a cyclist. A guest could fall down your stairs. A rainy morning commute on worn-out tires could result in a multi-car accident. And you could be held liable to others for the cost of damages – injuries, property destruction, emotional distress, lost wages and more.

Good thing you have insurance. But, wait, your policy covers $300,000 of liability, and, in a lawsuit, you’re judged liable for $1 million. That leaves $700,000 left to pay. How will you cover it?
If you have umbrella insurance and your policy covers the incident, the additional $700,000 will come from your policy. If not, it will come from the assets you have now, such as your home and savings, and from future assets, such as your wages or inheritance.

The fact is, it only takes one serious accident and a resulting lawsuit to put everything you own – and will own – at risk. And it only takes one umbrella policy to help protect it all.
Here are a few things you should know about umbrella insurance:

• Personal umbrella policies typically offer $1, $2, $3, $4 or $5 million of liability coverage. Consider your net worth when choosing your coverage –you could be sued for everything you have.
   
• An umbrella policy is not a stand-alone policy. Your insurance carrier will typically require you to meet certain qualifications, such as having an auto policy with a certain level of liability coverage, in order to purchase umbrella insurance.
   
• Even when you have umbrella insurance, your car or home insurance is your first line of defense. For example, if you are liable for $2 million in a car accident and your auto insurance covers $500,000 of liability, your auto policy covers the first $500,000. Your umbrella policy covers the remaining $1.5 million, assuming your policy covers the incident and that you purchased that much coverage. If you are liable for $250,000 in an accident on your property and your homeowners insurance covers $300,000, your umbrella policy won’t be needed.
   
• If you insure a motorcycle, ATV, golf cart, snowmobile, motorhome or watercraft, your umbrella policy may provide additional liability coverage on top of those policies as well. Be sure to check with your carrier to confirm your coverage on these types of vehicles.
   
• A single umbrella policy typically covers all of your family members who are residents of your household.

Essentially, an umbrella policy gives you excess liability coverage on top of what your other policies provide. If you’re at fault for a serious accident, you’ll need it.

Umbrella insurance also gives you liability coverage in instances where other policies don’t. Examples include driving in a foreign country or renting a boat.

If you’re curious about how umbrella insurance might play a role in protecting the life you’ve built or plan to build, give Bob Lancaster Insurance a call.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964