There is no question that the ownership and use of our autos present us with the greatest personal liability exposure. But our normal daily activities can expose us to the potential of a large liability claim that could threaten our personal assets. One of the best ways to understand the need for a personal umbrella policy (PUP) is to review actual claim examples. Listed below are actual personal liability claims that illustrate the need for higher personal liability limits.

Loss #1
A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the homeowners’ and personal umbrella policies responded to this claim.

Loss #2:
The insured hosted a party at his home. Among the guests was a family friend, who was also the insured’s financial advisor. The friend brought his wife, their 2-year-old child and their baby to the party. The insured gave them a jug of spring water to mix formula for the baby. The 2-year-old child also had a drink of the water. Shortly thereafter, both children became ill. The family left the party and took the children to the hospital. The hospital confiscated the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the words “weed killer” printed on it. The insured had mistakenly given the jug, which was similar to the ones containing spring water, to the family. The baby died and the 2 year old survived after being in critical condition several days. The personal umbrella liability limit was paid.

Loss #3:
The insured’s 18-year-old son was driving his parents’ car to the store with his 19-year-old girlfriend. He left the roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and internal injuries and received extensive physical therapy. The personal umbrella insurer settled with the girlfriend for the policy limit.

Loss #4:
An 18-year-old college student was struck by a fraternity paddle during initiation. He sustained facial fractures and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded $1,300,000.

Loss #5:
A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and, as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000.

Loss #6:
A babysitter left a 5-month-old infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the parents $11,000,000.
The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies.

For less than the cost of a cup of coffee a day, most folks can purchase a personal umbrella policy with a limit of $1,000,000, possibly $2,000,000 or even $5,000,000.
Jerry Milton, CIC, contributed this resource. The legal profession recognizes him as an expert on insurance coverages. He is also an education consultant for IA&B, working with CISR, CIC and on-demand CE programs.

Additionally, RHH offers life insurance to provide for your surviving loved ones upon your passing. This is crucial to cover any estate costs, pay for burial and for any other bills your family may incur. Health insurance is also another product to help cover health care costs. It’s very important to have in the event of unforeseen medical emergencies that could potentially be extremely expensive. By having health insurance you would then alleviate much costs and future debt. RHH even has a wedding protection plan.

RHH is upfront and honest and is sure to provide you with the necessary details to ensure you choose the right coverage plans. Their website provides informative feedback with a Frequently asked Q & A section. An added feature is their online insurance quote form. You can input your information in and receive a quote instantly without leaving home but if you want to speak with someone you can always call them using their toll-free number 1 (866) 847-0449. RHH insurance agents will be happy to explain all policy information to make sure there is no content that’s unclear to you. Go ahead and get your price quote today. http://www.rhhinsurance.com/personal-insurance.html

• Have you gotten married or divorced?
• Have you had a baby?
• Did your teenager get a driver’s license?
• Have you switched jobs or experienced a significant change in your income?
• Have you done extensive renovations on your home?
• Have you decided to buy a vacation or potential retirement home?
• Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?
• Have you signed a lease on a house or apartment?
• Have you joined a carpool?

If you answer yes to any of these questions, give us a call to update your policy. (410) 504-1002

Homeowners Insurance

Homeowners insurance is a personal insurance policy that covers the expense to repair or replace a home and the property that is kept inside. These policies protect the holders from damage that may be caused by vandalism, natural disasters, and the like. One thing that people should keep in mind when they are considering purchasing homeowners insurance is that many of these homeowners insurance policies do not cover damage that is caused by flooding. People who live in areas that are prone to flooding will usually have to purchase an additional policy to cover themselves for those possibilities. One interesting thing that is covered by most homeowners insurance policies is liability. This means that if a guest is injured while inside of one’s home due to negligence or something that can be blamed on the house, such as slipping on a wet floor, that person has the legal right to sue the owner of the house for the damages that occurred to his person. However, these damages that would be awarded to the injured guest would be covered by the homeowner’s homeowners insurance policy. This can save a great deal of stress and hardship and is very valuable for people who entertain company often.

Auto Insurance

Auto insurance protects a person in the evident that he has an accident i his car. these accidents can cause a great deal of harm. That is why it is so important to have automobile insurance.

Life Insurance

Life insurance covers a person in the event that he dies. These policies pay out money to people who were dependent on the person. When the provider for a family dies, it can be a huge blow to a family. Life insurance softens this blow.

Health Insurance

Health insurance pays for medical bills that a person incurs. Medical bills can be very expensive. Health insurance makes these costs manageable.
 
By purchasing the right personal insurance policies, a person can greatly reduce the impact that disasters will have on his life.

Summer is the time for fun. Book a tee time, put the boat in the water, head to the lake, the beach or the mountains. It is the time of year to play. Golfing, boating, fishing, water skiing, swimming, hiking, trail riding – you name it, we do it.

In order to play, we have to have the right toys. And, we have those toys – swimming pools, boats, golf carts, all-terrain vehicles (ATVs), motorcycles, motor homes, and trampolines for the kids. You name it, we’ve got it. And if we don’t own one, we’ll rent one.

But, are the toys we own and rent properly insured under personal insurance policies? In some cases the answer is yes, but, all too often the answer is no.

Pick up your phone and give us a call.  Find out whether your “summer fun” might turn into your “summer nightmare”.  We can help make sure it is “summer fun” for you!