Category Archives: Insurance and Risk Management

Spring is in the air, and summer is right around the corner. Like many Americans, you might be planning a little relaxation time this year. Half the fun is planning the trip which could take weeks laying out details, and shopping for the best rates. It is possible that sickness or serious health issues can come up around the time you plan your vacation. A travel insurance policy can help protect your travel investments if any potential “what-ifs” become an unfortunate reality.

Let’s say you booked passage on a cruise and a week before the trip you receive a call that the cruise has to be cancelled due to mechanical failure. The cruise liner will probably offer a full refund and maybe even a discount on your next trip, but what about the plane ticket that cost you several hundred dollars? Without the protection offered by travel insurance, you could be stuck with the transportation expenses.

Avoiding Financial Hardships While on Vacation

Delayed or missing luggage, cancelled cruises, weather delays for flights and even medical care costs while you are out of network can all spell disaster. While the U.S. embassy or consulate can help find medical services and assist in the transfer of funds from home, they won’t pay for medical care or the cost of repatriation back to the U.S.

For many trips, it may be necessary to rent a vehicle while on vacation. Rules and regulations differ from state to state as well as from country to country. Be sure to have a conversation with your insurance agent before you make any incorrect assumptions, and ask about “loss of use”. This is when the rental car is damaged while in your care, and has to go to the shop for repairs. The rental company may charge you the rental-fee for each day the car is being serviced, and “loss of use” is rarely covered under a standard auto insurance policy.

If in doubt, check with your insurance company to make sure your vacation destination is within their territory. With most insurance policies, the difference between carriers is contained in the fine print and isn’t always easy to understand. Contact your insurance agent for clarification on what is covered by your policy so you aren’t surprised by any financial hardships that could occur during your vacation.

Have Questions?

Advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor. Securities offered through Larson Financial Securities, LLC, member FINRA/SIPC.

Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide tax advice or services. Please consult the appropriate professional regarding your tax planning needs.

Few things can derail a retirement plan like a liability lawsuit. Accidents on the road and in your home can and probably will happen at some point in time, and when accidents occur they have the potential to put your assets at risk. The base policies on your home and automobile can have gaps in coverage and limits on payments. Supplementing your existing insurance with an umbrella policy may reduce the risk posed to your assets during a lawsuit.

If you are found to be legally responsible for injuring someone or damaging their property without a personal umbrella liability insurance policy in place, anything beyond the limits of your standard liability insurance coverage will have to come out of your own pocket, including attorney fees and court costs. Standard liability insurance generally includes homeowners, renters, automobile and watercraft policies. It’s not uncommon for jury awards and out-of-court settlements to run into the millions, and if you don’t have that kind of cash on hand your assets can be legally seized and future earnings can also be garnished.

How Much Coverage is Needed?

There are close to six-million car accidents each year causing 30,000 fatalities, so it is no surprise that 75% of personal umbrella claims are auto-related. Another large percentage of claims come from issues inside one’s home or property when visitors are hurt during a social gathering. A deck collapse during a social gathering, food poisoning, even a family pet defending its family. In fact, 40% of American households own a dog, and five million people suffer from dog bites each year.¹

Even doctors that rent need high liability coverage. A candlelight dinner can quickly turn into tragedy if it creates a multi-unit fire. Your hobbies could also put you at potential risk. Do you enjoy golf? If your golf ball goes astray and strikes somebody in the head, that can fall back under the coverage of your home or renters “Personal Liability” coverage.

Last Line of Defense

For high-value households, high liability coverage is essential. “Umbrella” coverage, and its less comprehensive cousin, the “Excess Liability Policy” are some of the least known and most underused types of insurance. Liability policies will not only pay the monetary damage costs, but often, just as important, the attorney fees and other court costs. Better yet, a $1 million umbrella policy typically costs about a dollar per day.

Consult with your property and casualty agent with regards to your particular situation and state laws. Be proactive with your asset protection coverage, because you never know when that next rainy day is around the corner.

Have Questions?

References:

1. Jacquelyn Connelly, “Top 3 Ways to Sell a Personal Umbrella.” Independent Insurance Agents and Brokers of America, Inc, (September 2015). http://www.iamagazine.com/markets/read/2015/09/14/top-3-ways-to-sell-a-personal-umbrella

Advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor. Securities offered through Larson Financial Securities, LLC, member FINRA/SIPC.

Insurance services offered through Larson Financial Group, LLC, an insurance agency.