Rising Financial Risks in Georgia: The Need for Umbrella Insurance

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Understanding the Growing Financial Threats

In recent times, unforeseen incidents such as multi-vehicle collisions, dog attacks, or injuries on private premises are increasingly jeopardizing the financial well-being of residents across Georgia. According to recent findings by Mercury Insurance, there has been a notable surge in bodily injury payouts since the pandemic’s onset, with the average liability claim escalating by an alarming 35%.

Introducing Enhanced Protection with Umbrella Insurance

To combat this escalating concern, Mercury has launched an innovative personal umbrella insurance policy tailored specifically for Georgians. This policy provides an additional layer of protection that extends beyond the typical limits of standard auto and home insurance plans, safeguarding policyholders from significant financial burdens due to large claims that surpass conventional coverage limits.

Umbrella insurance serves as a crucial buffer, stepping in when the liability limits of auto or home insurance are exceeded. For instance, consider a scenario where a homeowner with a policy liability cap of $300,000 is deemed liable for $1 million in damages following an accident on their property. In such cases, the homeowner’s policy might only cover a portion of the damages, leaving the individual responsible for the remaining $700,000 unless they have the added protection of umbrella insurance. Mercury’s umbrella insurance policy effectively bridges this coverage gap, shielding personal assets from potentially devastating financial losses.

The Impact of Social Inflation on Insurance Costs

The pressing need for umbrella coverage is partly driven by the phenomenon known as social inflation, where the cost of liability claims increases at a rate faster than that of general economic inflation. Over the past decade, the severity of personal auto liability claims has surged by 78%, in stark contrast to a 29% rise in the Consumer Price Index. This trend of escalating claim costs underscores the unpredictability and magnitude of financial risks, emphasizing the critical importance of umbrella insurance.

Flexible Coverage Options and Added Discounts

Mercury’s umbrella insurance offers a range of coverage options from $1 million to $5 million, with the additional option to include $1 million in uninsured motorist coverage for incidents involving uninsured drivers. Furthermore, policyholders can benefit from discounts by bundling auto, homeowners, and umbrella policies, making this essential coverage more accessible and affordable.