Beene Insurance Agency Blog

All You Ever Wanted to Know About Insurance

4 Lawyers walk into your office or why you need an Umbrella Policy

There are four lawyers in my family so I know a bit about how they think and what there job is. There job is to protect their clients. If you've ever wondered why you might need an excess liability or umbrella policy, think about this.

You are driving home from work one afternoon and suddenly your phone rings. You reach to grab it and it falls between the seats. When you look up, there's a bicyclist in the bike lane and you suddenly swerved and hit him. Unfortunately, he has been severely injured. Your insurance company ends up paying out all of your bodily injury limits of $100,000 which you always thought were sufficient and besides, you didn't want to pay say a hundred more a year anyway for higher limits of protection.Unfortunately the man you hit is now disabled and will not walk again. The insurance company cuts you loose because they have no further liability to you. $100,000 paid and they are done.You didn't mean to hit the man. It was an accident!

Now, it's just you. You and the plaintiff's lawyers. 

You've worked hard to build the equity in your house. In fact you owe less than $50,000 on your $300,000 home. Kiss that $250,000 goodbye.

You've accumulated monies in your retirement account. In fact you've got $200,000 in liquid funds. Kiss that $200,000 goodbye.

See where this is going? 

For only $200 to 300 a year you could have had a $1,000,000, $2,000,000 and up umbrella which may have saved you from losing everything you've worked so hard to accumulate. AND, an umbrella policy can protect YOU and YOUR FAMILY if you are hit by someone with low limits of liability or even uninsured.

So call me and make sure you are fully protected. Unless of course, you want 4 lawyers in your office.


Mitchell Beene

Agency Owner