Ask the Expert: The 4 Most Frequently Asked Umbrella Insurance Questions

1. My insured isn’t rich and doesn’t own a house. Why should I try to sell them one of these policies?

One agent I know put it this way: “I’m not a millionaire either, but I’m certainly capable of causing a million-dollar loss.”
Not too long ago, an accident with a loss in the hundreds of thousands of dollars was a big deal. But now? Think about injuring someone and they end up missing work for any length of time. Or if they’re seriously injured. The primary is gone in the blink of an eye.
A standalone personal umbrella is a buffer, sitting on top of home and auto, ready to pitch in when needed.
(My company is perfect for renters or people who don’t drive since we will write without auto.)

2. Um, like I said, my insured isn’t rich. Can they even afford this?

Can they afford not to?
Do they want to protect their home? How about their retirement, their savings — how about their future earnings?
Most claims are medical and when home and auto limits are exhausted, the claimant’s legal team will be very inspired to pursue their settlement using whatever legal channels are available — including wage garnishment (in essence, a lien which will appear on a credit report and follow you throughout their career, if they inherit property, try to rent an apartment or apply for auto insurance).
Policies start at about $300/year.
(As a bonus, presenting a quote for umbrella coverage protects agency E&O, so you’re covered, too.)

3. If the premium is so low, can I make any money selling a standalone umbrella?

Be a trailblazer: Make the umbrella a ticket to the underlying. Maybe you’re not competitive on home and auto today, so write a standalone personal umbrella [infographic] as an “a la carte” option to open the door to more.
Wondering how to do it? Get 5 simple steps right here.

4. Aren’t umbrellas time-consuming to quote?

Without a doubt, they used to be and some still are, but now you can run a quote online using basic information (I mean really basic: number of cars and houses is all you need).
Credit:http://www.insurancejournal.com

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