Demystifying the claims process

As insurance professionals, we have a front-row view of life’s precariousness, witnessing again and again how things can change in an instant. A client arrives home from a celebratory dinner to find a flood caused by a burst pipe has damaged her art collection. A leisurely ride downtown totals the classic car as an uninsured motorist runs a stop sign. Or an uncontrollable wildfire razes the family’s summer compound. Having witnessed such misfortunes and the rebuilding—of the homes, collections, and lives—that follows, we have learned that an experienced advisor by your side during carrier negotiations can minimize added stress during the claims process. That is why we dedicate tremendous resources to our claims advocacy responsibilities. When the worst happens, you deserve to have experts at your side to guide you all the way to a finalized settlement. We also know that the more familiar you are with the process beforehand, the better things are likely to go should you need to make a claim. To that end, this piece highlights all you can expect when filing a claim and what you can do to help ensure the experience is a smooth one. What to do in the immediate aftermath of a loss (or if trouble is imminent): A lot of emotional but crucial decisions will need to be made when calamity arises, but how you act in the moment can have a great impact on how your ensuing claim plays out. Setting a course of action beforehand will help get you to a best-case outcome. Here are some things to keep in mind. Before you do anything else, make sure everyone is safe. When a dangerous event is on its way, your first concern, of course, is getting family members and any employees to a secure location. Only then should you consider going back to collect whatever possessions you can. Similarly, in the immediate aftermath of an incident, take stock of everyone’s well-being before making any other moves. Stay ahead of the situation. As soon as you know that a damaging event is working its way towards you, contact your account executive so they can begin a claim, just in case. Inevitably, resources are scarce after such events, so you want to be first in line with carriers, adjusters, and contractors once the trouble clears. If your property emerges without any significant damage, we can help you close out the claim. Your first insurance-related call should be to your advisor, not the carrier. You’ll notice in the item above that we suggest you contact your account executive to begin a claim. That’s because our specialists have countless experience navigating situations of all kinds. For starters, they can peruse your loss history and assess the extent of the damage to determine if filing a claim is even in your best interest. If it is, they will keep the process on track, including filing expeditiously. They know carriers need to be given the best chance to determine the cause of a loss, and if you wait too long and the cause is no longer determinable—for instance, if repairs have been made—you may be denied restitution. Most important, what is said in and around the filing of a claim can alter what a carrier will cover. You can count on your team to position losses to your advantage. Always work to mitigate further damage. After the initial loss or crisis, most policies require you to do whatever can reasonably be done to minimize the damage from getting worse. Your advisors will be happy to put you in contact with the companies that dry out wet walls, patch roofs or temporarily fix burst pipes so that mold doesn’t grow, or the water damage doesn’t spread to other areas. It’s important not to throw things away. It’s perfectly understandable to want to begin cleanup efforts right away, but you need to fight the impulse. Every damaged item has to be inventoried and documented by the insurance adjustor. Any property that has been discarded will not be covered. What to do once a claim has been filed: The good news is that the claims process can yield satisfying results in as few as 10 days (for, say, a lost piece of jewelry). On the other hand, you might have to wait a bit longer—six months or more—if you are waiting to be compensated for major property damage even longer still if a liability suit is involved. Whatever the case, here are some steps you can take to keep forward progress: Prepare for the adjustor’s inspection. As the named insured, you will be the one speaking with the carrier’s representatives throughout the process. Again, what you do and don’t say has the potential to affect the resolution, so keep responses simple and direct. Most of all, avoid volunteering information. For example, if there is a case of water damage, suggesting seepage in the foundation may move your claim to a denial. Better to say you aren’t sure where the water is from and leave it at that. Get estimates for repairs. You will need to provide a quote from a contractor, repair shop, or whoever will be fixing the damage you have reported. (Alliant’s claims team can provide recommendations for such vendors and review their quotes and backup documentation.) If this is too much for you to tackle amid the post-event chaos, there are vendors who oversee quote-collections and rebuilds for a percentage of the reimbursement. Likewise, there are those who can inventory the damage for you. Be ready to negotiate. Once all documentation and estimates have been gathered, a carrier will offer a reimbursement figure. Your claims team will be invaluable here too, helping to reconcile the inevitable gap between the actual cost and proposed payout, giving you the best chance to recover an appropriate amount. Make sure the check is made out to the right person. Carriers are legally obliged to issue settlement checks to the named insured, and that can be confusing when that entity is in fact a family or LLC without a bank account. (We suggest that you look into this now with your account executive, and make any changes, so you won’t have to deal with this issue at the same time that you are dealing with losses.) It is worth noting that when a loan is involved, the carrier must also be listed on the check, and this often gets tricky, as every bank has its own fund-releasing procedure. One workaround is to ask the carrier to write the check directly to the vendor. As mentioned above, it is important to keep in mind that filing a claim is not always the right move, and that fact is truer than ever in today’s difficult market. In fact, we offer this piece of advice: pay out of pocket for any amount that will not cause you significant financial stress and save claims only for catastrophic losses. We recognize that this may sound like counterintuitive guidance, given that you pay good money for your coverage. Unfortunately, accruing too many claims can result in nonrenewals and higher premiums, and both of those outcomes will ultimately cost you more. Hopefully, you will never need to make these difficult calculations or file any claims. Should you need to do so, though, we believe that your coverage is only as good as the claims experience it prompts, and we will do everything in our power to make it as seamless and positive as we can. ...

A common claim explained: water loss

Too often we have seen a minor drip turn into a major headache. Whether from a burst pipe, a defective ice machine or a leaky faucet, water loss is the second-most common claim made by our clients. In fact, one of our carriers has found non-weather-related water trouble to be the primary source of interior property damage, resulting in almost half of such claims and, on average, a three-month dislocation. Another of our carriers, sees it as the main cause of loss in luxury homes, more common than weather-related flooding, fire or theft. Compounding this hazard is the fact that once a problem arises, homeowners are twice as likely to suffer more. Yet, water loss is by no means an inevitable occurrence. The following guide explains the eight most important things to know about dealing with water damage. 1. Damage caused by weathered-induced floods is not considered “water loss.” We have written about this before but it bears repeating because it can be confusing and is quite consequential: Damage due to rising water from heavy rains, hurricanes and other weather events is only covered by flood insurance, not homeowners insurance. Because of the increase in such situations—not least, in previously unaffected regions—we now recommend that all homeowners include flood coverage in their insurance program. 2. Aging urban infrastructure is prone to significant water loss, and it’s not always clear who is responsible for covering the damage. Typically, the building is liable for anything that occurs behind the walls and unit owners or shareholders are responsible for anything that happens inside their individual apartments, but this arrangement is dependent on the governing agreement and thus varies. In any case, it can be hard to ascertain exactly where a leak emanates from. Worse, even if you know water is coming from your upstairs neighbor’s apartment, you still have to prove their negligence, and that is a high bar; something like failing to attend to a toilet that begins to run continuously doesn’t make the cut. (A destructive party or faulty renovation, on the other hand, might.) Whatever the cause, you will most likely need to file a claim with your broker, who will work with your carrier to then subrogate to the other homeowner’s policy, if possible. 3. Southern homeowners now must consider the possibility of freezing temperatures. Most residences in states like Texas and Tennessee were not built to handle major mercury dips. Meanwhile, flash freezes—and the pipe bursts that often result from them—have become more likely. If you live in these newly susceptible areas, it is worth discussing preventative measures like adding water shutoff devices and a low temperature monitor with a contractor. Similarly, if you are embarking on a major renovation or rebuild after a loss, be sure to incorporate the same precautionary measures used in northern homes, such as, insulating exterior-facing pipes. 4. Use best practices to attach appliances to water lines. Washing machines, dishwashers and refrigerators—not to mention sinks, showers and toilets–are major perpetrators of water damage. Whether you live in an apartment or house, make sure contractors and installers use top-quality hoses and piping as well as the hardware that attaches it to the plumbing. Though workers often default to more cost-effective materials, asked-for upgrades should not add significantly to your cost. It can be well worth the expense. 5. Modern conveniences can cause inconvenient damage. With advances in smart technology comes the increased potential for problems. We regularly see damage caused by stand-alone icemakers, touchless faucets and other sensor-enabled appliances. If you want this kind of equipment in your home, make sure you also incorporate a shut-off device (see below). 6. Smart technology can also prevent leaks. Automatic shut-off devices are one of the best ways to protect your home. Installed by a plumber, they monitor typical water usage and automatically cut the flow when something unusual is detected. They also send alerts to your smartphone, so you can respond to the issue quickly, even if you are away. Similarly, you can install point-of-leak sensors under kitchen faucets, in bathrooms and anywhere else that water damage is likely to occur. Many monitor humidity and temperature, too. Low-temperature monitors are especially crucial in colder climates, alerting you or your caretakers to raise the heat if need be to prevent pipes from freezing. Note: Many carriers offer premium discounts to those who install such precautionary tools. 7. Addressing leaks immediately keeps mold from becoming a secondary issue. You can not see what is transpiring behind your walls; what looks like a manageable amount of damage on the outside can be building up to a massive mold problem on the inside. It’s crucial to bring in a remediation company after any water event to dry out everything sufficiently so the problem doesn’t grow out of hand. That can happen fast, especially in humid climates. It’s important to note that mold damage independent of a water loss is excluded on most homeowners policies. In fact, typically only a minimal amount of coverage is included for mold that forms due to a covered water loss. Depending on your state and carrier, higher limits could be available and should be added to your program. Be sure to consult with your broker about what options and limits might be available to you. 8. It may not pay to put in a claim for water loss. Statistics show that if you sustain one water loss there is a high probability another is to follow, and a pileup of offenses can present as an undesirable profile to an insurance carrier. The result: higher premiums or, worse, a nonrenewal. If you undergo water-related damage, contact your broker immediately to discuss next steps. If, for example, you have $15,000 worth of damage but a $10,000 deductible, it may make more sense to pay out of pocket rather than add the loss to your claim history. This is always a case-by-case calculation, though, so consult with your insurance professional. If there is a silver lining to the worrisome ubiquity of water loss, it is that we have become experts at handling it. Should you have any questions about prevention or coverage, don’t hesitate to reach out. ...

Filing an insurance claim in today’s evolving market

As we continue to navigate this unprecedented insurance landscape alongside you, our consultative approach to handling your potential claim is more important than ever. With insurance carriers continuing to raise premiums or, worse, decline renewals of long-standing policies, we want you to better understand the broader shift around filing even the smallest claims, which can help safeguard your long-term insurability. As such, our recommendation is that you call us first to discuss any loss or possible claim. To state it as clearly as possible, we never want you to file a claim directly with your insurance carrier before speaking with your personal account executive or with our dedicated, 24/7 claims team (800-221-5830). As your risk management advisors, we will look holistically at your insurance program and offer guidance as to what we think is the best approach for your specific situation, and given the market, so that you can make the most informed decision. This discussion will also allow us to best support your choice and advocate on your behalf. To help you prepare for such a conversation, we have outlined the six key considerations we would explore together before you decide whether to file a claim: 1. Was the loss caused by a catastrophic event? When the answer is yes, our team will most likely advise you to file a claim. The industry codes for catastrophic events like wildfires, floods, major storms, and earthquakes, which allows carriers to isolate related losses and means they will likely not hold that claim against you when it comes time to renew your policy. 2. Was a third party involved? If someone is injured or another person’s property is damaged, we will most likely recommend that you file a claim to ensure your assets are protected. With that in mind, we encourage you not to pull out your checkbook at the scene of a crash in the hope of avoiding an insurance claim, nor should you ever volunteer to cover someone’s losses before consulting our claims team or your account executive. 3. If no catastrophic event or third party was involved, what is your tolerance for paying out of pocket? Our claims experts have begun to ask how much clients are willing to cover themselves. If the cost of replacing whatever you lost falls within this amount, they then generally suggest you do not file a claim. 4. How will filing this claim impact your risk management strategy going forward? Someone who files too many run-of-the-mill claims risks being deemed by insurance carriers as “no longer profitable.” In the end, carriers are businesses that need to earn money to ensure that they can pay out claims while being financially successful, and that has become increasingly difficult to achieve as weather-related events have increased in frequency and severity as well as costs of replacement and reinsurance have risen. Additionally, construction (material and labor) and auto repair costs continue to increase. So, when it comes time to renew, they are paying more attention to claims histories, especially for water damage and auto accidents. That’s all the more reason we might recommend you handle whatever you can on your own, thus preserving your insurance for catastrophic losses. 5. Is there any reason for you to choose not to file this claim? No doubt it is frustrating to pay for insurance and then choose not to use it for a covered claim. However, after our discussion, you may decide that it’s not worth filing the claim as it could impact your future insurability and once you lose coverage it is very hard and expensive to get it back. If that’s the case, we will recommend other adjustments that may help lower your premiums, such as increasing deductibles or assessing exposures and coverage to make sure you are paying only for what you need. 6. Can we help you be even more proactive about preventing future losses? As you no doubt know, an ounce of prevention can save you thousands in repairs. This is why we regularly educate our client’s around proper maintenance. It’s crucial for you or your caretaker to do things like caulk around windows, clear drains and gutters of debris and check that the sump pump is operational. Taking the time to walk around your home and find the spots where a small investment will prevent a loss that in turn will save you money and effort in the future. And we are happy to provide further guidance and best practices if there is anything we can do to help in this process. Our primary goal is always to protect you and your family's long-term interests. This is why we will work together to guide and advocate for you throughout the claims process. And it’s why we hope your first step will be a call to our team and not the carrier. We can advise on the steps required to handle your immediate loss and keep you insured long-term, as we have done for clients for more than a century. ...

Steering clear of uninsured and underinsured motorists

It was a beautiful day and our client was enjoying an afternoon drive, windows down, elbow resting on the door. But in a moment delight turned to horror; her car was broadsided by another vehicle and rolled. She was successfully extracted from the wreckage, but the incident was not without major consequence. She had lost the use of her arm forever. Making matters worse, the motorist responsible for the crash was underinsured, leaving our client responsible for most of her costly and continuing medical expenses, lost wages, as well as the help she needed to care for her children as she healed. Unfortunately, this is an all-too-common occurrence. In 2023, one in seven drivers was uninsured, according to the Insurance Research Council—and that is before the pandemic wreaked its financial havoc. Recently, our claims advocates have noticed that more motorists than ever are significantly underinsured, with liability policies sufficient to cover only the smallest damages. At the same time, our roads have become more dangerous with 2020 being the worst year for U.S. traffic deaths in more than a decade. All of which explains why we are educating our clients about the importance of Uninsured and Underinsured Motorist (UM/UIM) coverage. This auto policy coverage component is as undervalued as it is vitally important to your financial peace of mind. How motorists end up with too-little insurance—or none at all—and why that could matter to you First, a little refresher: Typical automobile policies have many elements, to cover everything from vehicle damage (yours and others involved in an accident) to medical bills (yours and your passengers) to liability (the cost of harm, if you are at fault). The first two types of coverage are optional, but liability is mandatory in every state except New Hampshire. The amounts mandated, though, are often quite low; in any event, many motorists cancel those policies or cut them back even further once they have obtained their registration. There are two factors to blame for that: Tight wallets: Yes, the economy has rebounded well since the early days of the pandemic. Still, many bank accounts have not fully recovered from the virus’s significant financial hit. And when people need to save money, insurance is often one of the first cuts. Name-your-price insurance: Many drivers purchase policies online, without any expert guidance. With some carriers allowing people to decide what they want to pay, that can too often result in a purchase of the least-possible coverage. If an uninsured or underinsured driver causes an accident in which you are harmed, your automobile policy will not necessarily cover the totality of the costs, or even the majority of them. You can sue to recover your losses through the responsible party’s assets, but what if they have none? Any state mandated Uninsured and Underinsured Motorists coverage is not at all unlikely to make you whole either. A very worthwhile fix We encourage our clients to layer protections onto their auto insurance programs in order to maintain the highest levels of medical care and lifestyle security should a tragedy occur. We believe that though no one can predict accidents, everyone can effectively anticipate them. Consider another one of our clients who was standing on a sidewalk outside a car wash when she was hit by a car in a chain-reaction crash on the street. She spent the next four months in the hospital with a traumatic brain injury and continues to work with a neurologist and a therapist to recover. The two at-fault vehicles had liability coverage of $50,000 and $300,000, respectively—nowhere near enough to cover her ongoing expenses. But because she had added UM/UIM coverage to her auto and umbrella policies, she could rely on an extra $1.5 million to foot her bills. Here is the kind of policy inclusions we recommend to each of our clients: UM/UIM coverage: To provide financial assistance when you are in an accident with an at-fault driver who carries no liability insurance or whose liability limits are too low to cover the resulting damage or medical expenses. Excess UM/UIM coverage: To provide additional financial assistance to you or a family member beyond the maximum of your primary UM/UIM coverage. (Regular UIM coverage takes care of the amount beyond the at-fault driver’s policy limits, up to the UIM policy’s limits.) Simply put, acquiring these coverages means you never have to worry about another driver’s insurance choices. If the responsible party doesn’t have high enough limits to cover the necessary costs, your coverage will respond in place of that party, and your family and your assets will be properly protected. If you are unsure of whether you have the appropriate UM and UIM policies, please contact us for a quick review. ...

Common misconceptions about your insurance coverage

Major losses are hard enough to weather on their own. The last thing you need is the additional pain that comes from learning your coverage does not actually cover what you need it to. Further compounded by the fact that each policy is unique, and carriers have different options and requirements making it difficult to navigate the complexity of your personal insurance program. Which is why we are extremely careful to detail the particulars of all your coverages during our traditional client onboarding process and subsequent renewal conversations. The last thing we would ever want is for you to think something is covered when it’s not. This is one reason why we urge clients to call their insurance professional with any questions and schedule annual reviews. To further ensure that you are never caught off guard, here is a brief overview of the coverage areas we have found to be the basis of the most common misconceptions. Home Coverage Assumption: Mold is covered after water loss. The reality: Typical policies provide only minimal compensation for mold damage. Unfortunately, coverage for mold damage is complicated. All homeowners policies exclude mold coverage; however, if mold damage is present after a previously covered water loss, you may only receive a nominal reimbursement. It is possible to purchase additional coverage, an option we regularly discuss with clients. If you are not sure about your limits, and this is a concern, we recommend confirming with your account executive. Assumption: Flood insurance covers all water-related losses.The reality: Floods caused by rising surface waters require a special policy.Flood insurance in this country is in flux, with the federal program that oversees it raising rates in an attempt to strengthen its financial viability. In any case, government-backed flood insurance maxes out at $250,000 for the house itself and $100,000 for what is inside. That said, you may be eligible for a private excess flood policy that covers additional losses. That’s important because flood damage that results from rising surface waters is generally an excluded peril in homeowner’s policies. However, your broker can determine if you are eligible to purchase private flood coverage that’s designed for this scenario. Assumption: Landscaping on the property is covered.The reality: Generally, only if it causes damage to any structure.If a tree falls on your residence and causes significant damage to your home, you likely will be covered. However, if a storm results in fallen trees around your property but does not cause damage to your home, you will likely have very minimal coverage. It should be noted that some carriers may offer a nominal reimbursement in these instances. Another reason to speak with your insurance broker. Assumption: Hardscaping and other structures on the property are generally covered.The reality: Most policies offer limited protection for any structures that are not attached to the main dwelling.Non-primary structures—for example, a freestanding garage, pool, pool house, natural-stone patio, or pergola—typically fall under “Other Structures.” The coverage limit is usually set as a percentage of the dwelling value on the homeowners policy. Adding more coverage is sometimes tricky, as some policies don’t allow you to amend the limit while others will only increase it with an endorsement for an additional premium. It’s best to confirm with your broker that any other structures on your property have sufficient coverage. Collectibles Coverage Assumption: Jewelry, fine art, wine and the like are fully protected by homeowners policies.The reality: Homeowners policies offer only limited coverage for such items.Most homeowners policies do not cover the mysterious disappearance of a bracelet, but most jewelry policies do. Similarly, homeowners policies will only cover the spoilage of wine up to a certain minimal amount, but not the full value, while many wine policies do. If you have a valuable collection of any kind, we recommend a separate policy that adequately covers a full array of potential perils and offers sufficient compensation. Assumption: Your collectible car is fully covered by any automobile policy.The reality: To ensure full coverage, you and your carrier have to agree on a car’s value.Traditional automobile insurance bases the value of a vehicle solely on its VIN number. Therefore, if a collector has a 1992 Bronco and completed extensive restorations, this would increase both the car value and demand. That valuation needs to be reflected in your policy and may require an additional collectible car policy to cover the increased value. Always keep all the documentation necessary to prove the cost of the restoration and update the agreed-upon value following any customizations. Assumption: Your collectibles policy covers the current value of your collectibles.The reality: You must regularly reappraise collectibles.Collectible policies reimburse the listed value of a piece when the coverage was purchased, adjusted for inflation, and some may include an additional amount, albeit limited, for market value appreciation. Of course, the value of collectibles often increases significantly over time. That makes appraisals necessary every two to three years to ensure your coverage is always up to date. General Coverage Assumption: Identity theft policies cover losses from thefts committed under your name.The reality: Most policies compensate only for expenses associated with restoring your identity.If, for example, someone takes out a $40,000 car loan using your personal information, identity theft coverage will reimburse you for the time it takes to negotiate with the loan company but not the loan itself. Therefore, speak with your insurance advisor about adding a personal cyber policy to your program to help alleviate some of the financial impact. Assumption: Excess liability coverage covers everything you own.The reality: Only listed items are covered.We always advocate for consolidating coverage with one broker, because it is the best way to make sure all your possessions are covered by a single excess liability policy. More than one broker makes it too easy for important items to fall through the cracks. And you do not want a vehicle or watercraft left uncovered should you be sued for an incident in which it is involved. (Note: excess liability never extends to personal aircraft.) Once again, while the above outlines the most common areas for misconceptions around personal insurance, every client’s personal insurance portfolio is unique. If you are concerned about any of the areas, we hope that you reach out to your insurance advisor to definitively confirm your coverage. You’ve worked hard to build what you have; we can help you make sure that it is as well protected as it can possibly be. ...

Protecting yourself in an ever more litigious world

Accidents happen. Even if you do everything to maintain a low profile— adhere to the speed limit, keep plenty of distance between you and your neighbors—there is still a rising chance that you will be the target of a costly lawsuit whether or not you are at fault. This is even truer for affluent individuals. To help you better understand the risks and mitigate any losses, we asked two of our Private Client team leaders, EVP and executive managing director, Cindy Zobian (CZ) and first vice president Steven Kent (SK), some frequently asked questions around personal liability in today’s ever litigious world. Why is it important to talk about personal liability? And why now? CZ: Simply put, people are more likely to sue one another today than ever before. Yet, we still see successful individuals and families who do not have enough personal liability coverage. These cases often involve auto accidents or injuries that occur on someone’s property, but claims can arise in nearly any situation. For example, a teenager who is accused of cyberbullying or a golfer who doesn’t yell “fore!” and then hits someone with a wayward shot. Expect their victims to sue, particularly if they perceive the other party to be affluent. SK: That’s true. I think it’s fairly common knowledge that affluent individuals are targets for lawsuits. However, you don’t have to be driving a Maserati to be targeted. There are so many ways for someone to conclude you are successful. Social media makes it easier for people to determine that you have money and would be worth the effort to sue. For example, if your profile has pictures of you standing in front of your Malibu mansion, you are more likely to get sued than if you’re standing outside a modest ranch. It’s important to be mindful of what you are posting publicly on social media. What if my lifestyle isn’t conspicuous? Will I need less liability protection? SK: Not necessarily. The affluent are more likely to live, work and play around people who own things that are costly to replace if damaged. CZ: Exactly. For instance, in one extreme case, a fire broke out in a client’s apartment in Manhattan. Their neighbors’ apartments were damaged. In fact, there was considerable smoke damage in one unit, which affected their neighbor’s priceless art and rare antiques collection. In addition to the damage, the residents expected to be put up in nice hotels while the repairs were being made. Our client’s insurance company ultimately paid tens of millions of dollars in claims. But most high-net-worth people are properly protected, right? SK: Excess personal liability insurance, often called “umbrella” policies, cover you against claims of injury to people and damage to property. Typically, your auto and homeowners’ policies have coverage included up to a certain limit. Umbrella policies provide additional protection over and above that limit. When we meet new clients it’s not that uncommon to find that they have very little or no umbrella coverage. That’s why it is so important to have a conversation about this. CZ: Accidents happen. For example, a few years ago, one of our clients had a relative visiting from out of town who borrowed his car. Unfortunately, the relative was not familiar with our roads and ran a stop sign, causing a bus to swerve onto an embankment and roll over. While there weren’t any passengers on the bus, there was a pedestrian riding a bike on the embankment who sustained serious injuries. This is an extremely unfortunate case but the bottom line is that while our client was not actually driving the car, he was still sued. How do these types of situations generally pan out? CZ: A few cases go to trial, but most are settled privately. We’re also seeing larger settlements regardless of who was at fault. We had a client hit a pedestrian who was texting while he was walking across the street. The driver, our client, had the right of way. Regardless, his insurance company ultimately paid out a six-figure settlement. Is there such a thing as too much liability coverage? CZ: We get this question a lot which is why we developed our proprietary tool, What’s My Liability. This tool calculates a suggested range of liability coverage. There’s no magic number to determine the correct amount because it really depends on the value of the assets that are being protected and the individual’s risk tolerance. We strongly suggest that you talk to a professional for further guidance. SK: For most of our clients, I’d say that if their limit is below $5 million, they are effectively uninsured. You can get coverage up to $50 million with little hassle. We do have a few clients who are in the public eye and are more concerned about being magnets for lawsuits. For reference, those clients carry more than $100 million in personal liability coverage. Any last thoughts? CZ: It’s easy to get this wrong, and the ramifications can be serious and expensive. So it’s always worth a 10 minute chat with a professional to make sure you and your family are properly protected. We’re here to help! ...