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

New Listing - 4 weeks online
$275,000
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
900
SQFT
Lindsysp #2
960 Taft Avenue NE
Atlanta, GA 30309
Open House 12/15 at 2PM
$289,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
746
SQFT
Piedmont Crest #106
1055 Piedmont Avenue NE
Atlanta, GA 30309
New Listing - a week online
$314,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
787
SQFT
Piedmont Crest #114
1055 NE Piedmont Avenue NE
Atlanta, GA 30309
New Listing - 3 hours online
$265,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
804
SQFT
The Gaither #12
301 10th Street NE
Atlanta, GA 30309
$324,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
833
SQFT
Wilburn House #203
266 11th Street NE
Atlanta, GA 30309
$375,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,182
SQFT
Parkgate Midtown #101
1072 Piedmont Avenue NE
Atlanta, GA 30309
New Listing - 4 weeks online
$1,099,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
3,028
SQFT
987 Myrtle Street NE
Atlanta, GA 30309
Midtown Subdivision
$799,900
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
3,403
SQFT
983 Myrtle Street NE
Atlanta, GA 30309
Midtown Subdivision
$235,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
907
SQFT
Piedmont Park West Lofts #303
1029 Piedmont Avenue NE
Atlanta, GA 30309
$399,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,185
SQFT
Piedmont Park West #302
1029 Piedmont Avenue NE
Atlanta, GA 30309
$334,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
989
SQFT
Luxe #1701
222 12th Street NE
Atlanta, GA 30309
$520,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,329
SQFT
Luxe #1508
222 12th Street NE
Atlanta, GA 30309
New Listing - a week online
$675,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,732
SQFT
Luxe #1102
222 12th Street
Atlanta, GA 30309
Price Change - a week ago
$459,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
1,424
SQFT
Lofts At The Park Ii #301
1058 Piedmont Avenue
Atlanta, GA 30309
$337,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
960
SQFT
Parc Vue #1102
275 13th Street NE
Atlanta, GA 30309
$243,500
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
780
SQFT
Parc Vue #505
275 13th Street NE
Atlanta, GA 30309
New Listing - a week online
$260,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
765
SQFT
Parc Vue #506
275 13th Street NE
Atlanta, GA 30309
$399,900
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,125
SQFT
Parc Vue #501
275 13th Street NE
Atlanta, GA 30309
$245,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
850
SQFT
Parc Vue #307
275 13th Street NE
Atlanta, GA 30309
Price Change - 3 weeks ago
$545,000
Townhouse For Sale
Active
2
BED
2
TOTAL BATHS
1,653
SQFT
199 12th Street #7
199 12th Street NE
Atlanta, GA 30309
$699,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
2,268
SQFT
199 12th Street #9
199 12th Street
Atlanta, GA 30309
Price Change - 3 weeks ago
$347,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
980
SQFT
Lofts At The Park #205
206 11th Street NE
Atlanta, GA 30309
$649,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,732
SQFT
Luxe Condo #1103
222 12th Street NE
Atlanta, GA 30309
$259,000
Condo For Sale
Active
2
BED
1
TOTAL BATHS
Stanford Court #A2
343 8th Street NE
Atlanta, GA 30309
$599,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
1056 Dickson Place NE
Atlanta, GA 30309
Midtown Subdivision
$189,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
760
SQFT
Glendale Terrace #B1
885 Glendale Terrace NE
Atlanta, GA 30309
New Listing - 3 weeks online
$175,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
436
SQFT
Park View Condos #11
272 14th Street NE
Atlanta, GA 30309
New Listing - 3 weeks online
$1,785,000
Single Family Home For Sale
Active
3
BED
4
TOTAL BATHS
3,592
SQFT
900 Penn Avenue NE
Atlanta, GA 30309
Midtown Subdivision
$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
$399,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,146
SQFT
Mayfair Renaissance #2507
195 14th Street
Atlanta, GA 30309
New Listing - a week online
$389,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,146
SQFT
Mayfair Renaissance #1507
195 14th Street NE
Atlanta, GA 30309
New Listing - 8 hours online
$250,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
744
SQFT
Mayfair Renaissance #1206
195 14th Street NE
Atlanta, GA 30309
Price Change - 3 weeks ago
$240,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
755
SQFT
Mayfair Renaissance #712
195 14th Street NE
Atlanta, GA 30309
Open House 12/15 at 1PM
$489,900
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,345
SQFT
Mayfair Renaissance #1602
195 14th Street NE
Atlanta, GA 30309
$269,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
750
SQFT
Mayfair Tower #1806
199 14th Street NE
Atlanta, GA 30309
New Listing - 3 weeks online
$394,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,234
SQFT
Mayfair Tower #2805
199 14th Street NE
Atlanta, GA 30309
$265,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
805
SQFT
Mayfair Tower #403
199 14st Street
Atlanta, GA 30309
Price Change - 3 weeks ago
$165,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
520
SQFT
916 Myrtle #2
916 Myrtle Street NE
Atlanta, GA 30309
$240,000
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
723
SQFT
Park Central #1008
1101 Juniper Street NE
Atlanta, GA 30309
$309,850
Condo For Sale
Pending
1
BED
1
TOTAL BATHS
1,054
SQFT
Park Central #1028
1101 Juniper Street NE
Atlanta, GA 30309
New Listing - 6 days online
$367,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,161
SQFT
Park Central #804
1101 Juniper Street NE
Atlanta, GA 30309
Open House 12/14 at 1PM
$353,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,161
SQFT
Park Central #604
1101 Juniper Street NE
Atlanta, GA 30309
Price Change - 2 weeks ago
$369,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,169
SQFT
Park Central #423
1101 Juniper Street NE
Atlanta, GA 30309
Open House 12/15 at 2PM
$773,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,944
SQFT
877 Penn Avenue NE
Atlanta, GA 30309
Midtown Subdivision
New Listing - a week online
$1,150,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
4,261
SQFT
1031 Juniper Street NE
Atlanta, GA 30309
0 Subdivision
$230,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
893
SQFT
Ansley Arms #301
1230 Piedmont Avenue NE
Atlanta, GA 30309
$699,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
3,523
SQFT
848 Durant Place NE
Atlanta, GA 30308
Midtown Subdivision
$1,599,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
2,289
SQFT
1065 Midtown #3302
1065 Peachtree Street
Atlanta, GA 30309
$1,380,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
2,289
SQFT
1065 Midtown Loews #3005
1065 Peachtree Street NE
Atlanta, GA 30309
$1,369,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
2,289
SQFT
1065 Midtown Loews #2805
1065 Peachtree Street NE
Atlanta, GA 30309
$234,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
715
SQFT
Tuscany #2223
955 Juniper Street NE
Atlanta, GA 30309
Price Change - 2 weeks ago
$244,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
693
SQFT
Tuscany #2317
955 Juniper Street NE
Atlanta, GA 30309
$250,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
821
SQFT
Tuscany #2228
955 Juniper Street NE
Atlanta, GA 30309
$345,000
Condo For Sale
Pending
2
BED
2
TOTAL BATHS
1,181
SQFT
Tuscany #4120
955 Juniper Street NE
Atlanta, GA 30309
$275,000
Condo For Sale
Pending
2
BED
1
TOTAL BATHS
1,031
SQFT
Tuscany #3125
955 Juniper Street NE
Atlanta, GA 30309
$1,199,000
Single Family Home For Sale
Pending
4
BED
5
TOTAL BATHS
3,800
SQFT
867 Myrtle Street
Atlanta, GA 30308
Midtown Subdivision
$1,549,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
3,704
SQFT
12 S Prado NE
Atlanta, GA 30309
Ansley Park Subdivision