Driving toward Wrightsville Beach the other day, I started thinking about the transition between topics for Insights, namely Supplemental Benefits Policies, and another one of our products, the Personal Umbrella Policy (PUP).

Each product is similar, I thought, rolling down the window and catching sight of the boats in the waterway. Each is designed to provide a practical safeguard against financial worries during troubled times. Realizing that something could go wrong if I looked for too long, I refocused on my driving and arrived at my destination safely.

It was a jarring little shock – an experience that prompted me to think about the marketing materials from Allstate, which point out that even great drivers can get distracted and cause an accident. Nobody wants to become a statistic but the reality is that accidents can happen to anyone.

Lawsuits are common in our culture and there is a real possibility of being sued if you’re ever found at fault in a major auto accident, a serious mishap on your property, or an accident that occurs away from home. One adage that has stayed with me is that, “You do not have to be a millionaire to be sued like one.”

That is why I have a strong belief in the value provided by the Personal Umbrella Policy available through Allstate. Most of our clients find them to be reasonably priced and these policies are designed to offer financial protection against large and potentially devastating liability claims or judgments. It’s called an umbrella policy because it offers an extra layer of protection above a standard auto, boat or homeowners’ insurance policy. Simply put, a PUP kicks in when liability limits have been reached for those primary policies.

The product information I have presents a compelling scenario in regard to a fatal auto accident, in which the policy holder was found at fault, sued and found liable for $2 million. Most people’s auto liability policies only cover up to $250,000 for the medical bills for the passengers in the other vehicle, a fact that could leave the policy holder in this case on the hook for a staggering $1.75 million.

Of course there are many other situations that could occur and deal a major blow to a family’s finances and quality of life, such as a teenage driver in the family car who texted someone and caused an accident, or more frightening, a teenager who allowed a friend to borrow the family car. Auto insurance travels with the car and the policy holder.

The point is that everyone with any material assets should consider an umbrella policy. Most of the PUPs we write are for $1 million in extra liability coverage, but we can write them for up to $5 million, and above if certain criteria are in place. We have to consider each policy on a case-by-case basis, given the specific needs of the individual or family, but the cost annually is generally found to be a good value considering the added peace of mind that having one can provide.

To find out more about Personal Umbrella Policies, please contact me 910-599-9071 or [email protected].

Will Brown is the owner of the Will Brown Insurance Agency LLC, and represents Allstate Insurance Company. Brown and his staff offer property, casualty, health and life insurance, as well as personal financial services and Allstate Benefits, one of the nation’s leading voluntary benefit plans. The Will Brown Insurance Agency has a comprehensive protection and investment product portfolio, with a strong commitment to serving families and small businesses in an advisory role. Will Brown may be reached at (910) 599-9071, or by email at [email protected]. To learn more about the Will Brown Insurance Agency, click here.