Disputes

Disputes

Despite these high profile cases, 40 percent of wealthy households have less than $5 million in umbrella liability coverage, including 21 percent who have none at all. Umbrella coverage is a critical component of an overall personal insurance program because the liability coverage in home and auto policies rarely exceeds $500,000. When those limits of coverage are insufficient, umbrella coverage kicks in to provide additional protection.

How much umbrella liability coverage should someone purchase? The most prudent choice is to match the combination of your net worth and future income stream.

How much umbrella liability coverage should someone purchase? The most prudent choice is to match the combination of your net worth and future income stream.

Without the additional protection, families can be forced to sacrifice their homes, their savings and investments, and their future income stream to pay damages. These dire consequences explain why agents ranked umbrella liability as the most serious problem of underinsurance. Fully 40 percent of agents gave it the top spot, more than for any other type of coverage.

How much umbrella liability coverage should someone purchase? The most prudent choice is to match the combination of your net worth and future income stream. Carriers that specialize in serving high net worth families typically offer up to $100 million in coverage. Their policies also pay for legal defense costs without using up the liability limit and cover the cost of having a public relations firm protect the client’s reputation.

Surprisingly, the cost per million dollars in coverage can amount to only a few hundred dollars. Thus, the savings in taking a higher deductible and bearing more responsibility at the low end of risk can more than pay for protection at the high end of risk — the kind of risk that can devastate a family’s financial well-being and lifestyle.

Besides encouraging clients to purchase the right amount of umbrella coverage, agents cited two additional mistakes to avoid:

  • The umbrella liability coverage should start when the home and auto liability coverage limits end. For instance, if the home and auto policies provide up to $300,000 in liability coverage, the umbrella policy should start at $300,000. If it starts at a higher amount, say $500,000, the client could become responsible for paying the $200,000 gap.
  • Recreational vehicles and company cars should be listed on the umbrella policy. In the case of company cars, the company-purchased auto insurance may prove inadequate, especially when the car is being driven for pleasure.

Uninsured/underinsured Liability

86 Percent Said Likely Underinsured

One in seven drivers has no insurance, according to the latest nationwide statistic from the Insurance Research Council.4 In some states, the ratio can be one in four. Due to the difficult economy, many more may have only the state-required minimum level of liability insurance, which can be as low as $20,000 or even $10,000.

"A client's daughter's friend took a fourwheeler off premises. Was injured. The client was sued for a six figure amount and had no coverage for the incident with his mass-market carrier." – Donald Batchelor, VP, Member of the LLC, Lipscomb and Pitts Insurance, LLC

“A client’s daughter’s friend took a fourwheeler off premises. Was injured. The client was sued for a six figure amount and had no coverage for the incident with his mass-market carrier.”
– Donald Batchelor, VP, Member of the LLC, Lipscomb and Pitts Insurance, LLC

If one of these uninsured or underinsured drivers causes an accident that results in serious injury, the injured person would stand little chance of recovering expenses for medical care that could run into the millions of dollars. The other driver would probably have insufficient assets to pursue in a lawsuit.

No-fault auto insurance laws could help in the few states that have them. Health insurance could also help, but lifetime payout limits and co-pay percentages could still impose a significant financial burden. Also, health insurance does not compensate for lost income and pain and suffering.

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Atlanta Homes for Sale

$289,000
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
900
SQFT
Lindsy #12
960 Taft Avenue NE
Atlanta, GA 30309
New Listing - 2 weeks online
$308,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
770
SQFT
Wilburn House #107
266 11th Street NE
Atlanta, GA 30309
$1,125,000
Multi-Family For Sale
Pending
0.075
ACRES
FULTON
COUNTY
968 Argonne Avenue NE
Atlanta, GA 30309
Midtown Subdivision
New Listing - 2 weeks online
$350,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,182
SQFT
Park Gate #101
1078 Piedmont Avenue NE
Atlanta, GA 30309
$262,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
895
SQFT
Piedmont Park West Lofts #104
1029 Piedmont Avenue NE
Atlanta, GA 30309
$425,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,237
SQFT
Piedmont Park West Lofts Condo #201
1029 Piedmont Avenue NE
Atlanta, GA 30309
$419,900
Condo For Sale
Pending
2
BED
3
TOTAL BATHS
1,242
SQFT
Ansley Above The Park #1004
1130 Piedmont Avenue
Atlanta, GA 30309
Price Change - 2 weeks ago
$549,500
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,536
SQFT
Ansley Above The Park #413
1130 Piedmont Avenue NE
Atlanta, GA 30309
$639,900
Condo For Sale
Pending
2
BED
3
TOTAL BATHS
1,732
SQFT
Luxe #1402
222 12th Street NE
Atlanta, GA 30309
New Listing - 3 weeks online
$795,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,732
SQFT
Luxe #1502
222 12th Street
Atlanta, GA 30309
Price Change - 2 weeks ago
$530,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,329
SQFT
Luxe #1508
222 12th Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$572,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,515
SQFT
Lofts At The Park Ii #303
1058 Piedmont Avenue NE
Atlanta, GA 30309
Price Change - 2 weeks ago
$424,900
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,424
SQFT
Lofts At The Park Ii #201
1058 Piedmont Avenue NE
Atlanta, GA 30309
New Listing - 3 days online
$499,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
1,424
SQFT
Lofts At The Park Ii #301
1058 Piedmont Avenue NE
Atlanta, GA 30309
$249,887
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
765
SQFT
Parc Vue #603
275 13th Street NE
Atlanta, GA 30309
Price Change - a week ago
$249,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
780
SQFT
Parc Vue #505
275 13th Street NE
Atlanta, GA 30309
$269,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
860
SQFT
Parc Vue #809
275 13th Street NE
Atlanta, GA 30309
New Listing - 4 days online
$259,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
765
SQFT
Parc Vue #404
275 13th Street NE
Atlanta, GA 30309
New Listing - 3 days online
$279,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
765
SQFT
Parc Vue #103
275 13th Street
Atlanta, GA 30309
$262,500
Condo For Sale
Active
1
BED
1
TOTAL BATHS
850
SQFT
Parc Vue #307
275 13th Street NE
Atlanta, GA 30309
New Listing - 4 weeks online
$238,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
765
SQFT
Parc Vue #304
275 13th Street NE
Atlanta, GA 30309
New Listing - 3 weeks online
$399,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,350
SQFT
Parc Vue #211
275 13th Street NE
Atlanta, GA 30309
$289,900
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
960
SQFT
Parc Vue #402
275 13th Street NE
Atlanta, GA 30309
$590,900
Townhouse For Sale
Active
2
BED
2
TOTAL BATHS
1,653
SQFT
199 12th Street #7
199 12th Street NE
Atlanta, GA 30309
New Listing - 4 days online
$599,000
Townhouse For Sale
Active
2
BED
2
TOTAL BATHS
1,824
SQFT
199 12th Street #6
199 12th Street NE
Atlanta, GA 30309
$775,000
Single Family Home For Sale
Pending
2
BED
3
TOTAL BATHS
2,301
SQFT
972 Myrtle Street
Atlanta, GA 30309
Midtown Subdivision
$275,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
792
SQFT
Park View #8
272 14th Street NE
Atlanta, GA 30309
$375,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
940
SQFT
Lofts At The Park #701
206 11th Street NE
Atlanta, GA 30309
$349,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
1,038
SQFT
Lofts At The Park #204
206 11th Street NE
Atlanta, GA 30309
$425,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
1,005
SQFT
Luxe #2105
222 12th Street NE
Atlanta, GA 30309
$1,499,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,820
SQFT
Luxe #1806
222 12th Street NE
Atlanta, GA 30309
$1,075,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,820
SQFT
Luxe #906
222 12th Street NE
Atlanta, GA 30309
Price Change - 4 weeks ago
$649,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,732
SQFT
Luxe Condo #1103
222 12th Street NE
Atlanta, GA 30309
$637,500
Condo For Sale
Pending
2
BED
3
TOTAL BATHS
1,727
SQFT
Luxe #707
222 12th Street NE
Atlanta, GA 30309
Price Change - a week ago
$189,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
620
SQFT
Midtown On 8th #3
317 8th Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$185,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
640
SQFT
Midtown On 8th #6
317 8th Street NE
Atlanta, GA 30309
$346,000
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
1,082
SQFT
Parkview #23
272 14th Street NE
Atlanta, GA 30309
$1,749,900
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,650
SQFT
1204 On The Park #2
1204 Piedmont Avenue NE
Atlanta, GA 30309
$1,799,900
Townhouse For Sale
Active
3
BED
4
TOTAL BATHS
2,650
SQFT
1204 On The Park #3
1204 Piedmont Avenue NE
Atlanta, GA 30309
Price Change - 3 days ago
$247,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
693
SQFT
Mayfair Renaissance #1404
195 14th Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$325,000
Condo For Sale
Pending
1
BED
2
TOTAL BATHS
1,055
SQFT
Mayfair Renaissance #811
195 14th Street NE
Atlanta, GA 30309
$249,900
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
750
SQFT
Mayfair Tower #809
199 14th Street NE
Atlanta, GA 30309
New Listing - 4 weeks online
$250,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
750
SQFT
Mayfair Tower #2509
199 14th Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$375,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,007
SQFT
Mayfair Tower #1508
199 14th Street NE
Atlanta, GA 30309
Price Change - 3 weeks ago
$230,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
750
SQFT
Mayfair Tower #906
199 14th Street NE
Atlanta, GA 30309
$299,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,103
SQFT
Mayfair Tower #305
199 NE 14th Street NE
Atlanta, GA 30309
New Listing - 5 days online
$369,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,161
SQFT
Park Central #604
1101 Juniper Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$379,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,158
SQFT
Park Central #921
1101 Juniper Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$319,900
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
1,008
SQFT
Park Central #72
1101 Juniper Street NE
Atlanta, GA 30309
New Listing - 5 days online
$300,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
1,072
SQFT
Park Central #727
1101 Juniper Street NE
Atlanta, GA 30309
$239,900
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
764
SQFT
Park Central #1512
1101 Juniper Street NE
Atlanta, GA 30309
New Listing - 3 weeks online
$385,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,161
SQFT
Park Central #54
1101 Juniper Street NE
Atlanta, GA 30309
$379,900
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,169
SQFT
Park Central #319
1101 Juniper Street NE
Atlanta, GA 30309
Price Change - a week ago
$234,900
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
723
SQFT
Park Central #708
1101 Juniper Street NE
Atlanta, GA 30309
Price Change - 2 weeks ago
$799,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
3,287
SQFT
877 Penn Avenue NE
Atlanta, GA 30309
MIDTOWN Subdivision
$509,831
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,502
SQFT
1023 Juniper Lofts #305
1023 Juniper Street NE
Atlanta, GA 30309
New Listing - 2 weeks online
$330,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
930
SQFT
1023 Juniper Lofts #105
1023 Juniper Street NE
Atlanta, GA 30309
Price Change - 2 weeks ago
$295,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
1,024
SQFT
Juniper Lofts #104
1023 Juniper Street NE
Atlanta, GA 30309
$224,900
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
877
SQFT
Ansley Arms #307
1230 Piedmont Avenue NE
Atlanta, GA 30309
$299,000
Condo For Sale
Active
2
BED
1
TOTAL BATHS
858
SQFT
Piedmont Crescent #15
907 Piedmont Avenue NE
Atlanta, GA 30309