Uninsured/Underinsured Motorists Coverage

Today, many motorists drive without insurance or carry limits of liability that are grossly inadequate.  When one of these drivers causes an accident, the victims may not be compensated for their loss.  The insurance industry has developed two coverages designed to indemnify the innocent victims for the loss caused by an uninsured or underinsured driver.

The purpose of the coverages is to put the victim in the same position as if the motorist who is legally liable had bodily injury coverage sufficient to pay the damages.

Uninsured Motorist coverage provides compensation to insureds who have suffered bodily injury in an accident with an at-fault motorist does not have any bodily injury liability insurance.  The coverage also applies when the victim is injured by a hit and run vehicle or if the insurance company covering the at fault driver either denies coverage or become insolvent.  A second coverage, Underinsured Motorist coverage, is activated when the at fault driver has some coverage, but not enough to cover all the damages of the accident.

With an increasing number of uninsured and underinsured drivers on the road, the prudent person is buying limits for Uninsured and Underinsured Motorist coverage equal to the liability limits found on their auto insurance policy.  In addition, many people endorse excess limits of Uninsured and Underinsured Motorist coverage on to their Personal Umbrella Liability policy.

In a perfect world, everyone who owns or drives a car would insure it for substantial limits of liability.  In the real world, we cannot assume this is the case and today drivers need to enhance their own auto policy by adding Uninsured and Underinsured Motorist coverage.

How an Umbrella Works

Odds are you will never be sued for a million dollars.  But, what if you were?  What if your teenager caused an auto accident leaving a passenger in the other car permanently disabled?  And then what if the injured person sued you for $1 million and won.

How much liability coverage do you have under your auto policy?  Would it be enough?  If it is not enough, where would the money come from?  The fact is, you could lose everything you own and continue to pay for years to come.

The chances of this happening to you are not very great:  that is why insurance to cover the exposure is so affordable.  A Personal Umbrella liability policy can usually be obtained for less than $150 a year (Standard premium based on one home and one auto).  That same amount will only pay for the services of a good attorney for less than an hour.

A Personal Umbrella policy sits on top of other insurance that includes liability protection, such as your auto, homeowners and boat policies.  When coverage under these primary policies is not enough, the umbrella policy is triggered, spreading protection (hence the term “umbrella”).

Only you can decide how much liability coverage is right for your family.  In making that decision, you may want to know what an umbrella should cost in your particular situation.  Call your agent and get a quote.  Then you can make an informed decision.

Liability: Peace of Mind Coverage

The liability promise is the biggest commitment an insurance company can make.

“We will pay up to the limit of liability for the damages for which the insured is legally liable”

Liability coverage is designed to pay when an insured hurts someone or damages another’s property.  The “damages” referred to are those sums paid to the claimant, the person who has sustained damage.

·         A neighbor slips and falls on the ice on your sidewalk; you are liable for their damages

·         Your teenaged son loses control of your boat and collides with another; you are liable for the damages

·         Your over-active eight-year-old propels a loaded shopping cart down the aisle, hitting a little old lady and sending her flying; you are liable for the damages

In addition to paying the damages for a covered loss, your liability coverage pays for all the attorney fees and defense costs.  With most liability policies, the entire limit of liability shown on the front of the policy goes to pay damages; defense is paid in addition.  Today, the cost of defense is often more than the amount of the damages.

There are always expenses involved with a liability claim:  claims expenses, investigation expenses, and court expenses.  A liability policy will pay for these and the payment does not come out of your policy limit.

As with any insurance contract, there are exclusions in a liability policy.  Generally, liability policies do not cover intentional damage.  In addition, a homeowner’s policy does not cover any business-related claim.  An auto policy excludes coverage when carrying people or property for hire.  When buying an insurance policy that includes liability, you should always ask what is excluded.  But, despite the exclusions, the coverage provided by a liability policy is very broad.

There is liability coverage on an auto policy, a homeowner’s policy, and a recreational vehicle policy.  You can also purchase a Personal Umbrella liability policy which provides excess limits.  One of the most important insurance decisions an individual makes is the amount of liability coverage.

The liability promise is the biggest promise an insurance company can make.  It is true “peace of mind” coverage

How much is enough

With liability insurance, you are offered the opportunity to transfer a portion of the risk of being sued; only you can decide how much of that risk you should transfer.  The experts say there are four factors everyone should take into consideration when making the decision:

·         What do you have to lose?

What are you saving for?  Retirement?  College?  A dream vacation?  How would you feel about turning your savings over to a total stranger?  Would you be able to continue to save if you had to pay an uncovered judgment?

·         How likely is it to happen to you?

Some people are more likely to face a large lawsuit.  Do you have teen-aged drivers, recreational vehicles, a swimming pool or a dog?  Are you active in the community or visibly successful?  Do you coach little league or play bocce ball?  Some people have more exposures to loss than others

·         What will it cost?

Higher limits of liability are usually affordable; your agent will be able to tell you the cost of increasing the limits on your policy.  Then, call a good defense attorney and ask what he would charge to defend you if you were to be sued for more than your limits.

·         How do I feel about risk?

Cautious people transfer more risk to an insurance company; risk takers are comfortable taking their chances with lower limits.  Remember to consider the risk tolerance of your entire family.  How would the dynamics of your family change if you faced a liability claim that was only partially covered?  Would your family’s sense of security be threatened if you were sued for more than your limit?

Only you can decide how much liability is right for you.  Consider these factors, make a decision, and adjust your insurance to what you consider appropriate for your circumstance.  Remember, today you do not have to be a millionaire to be sued like one.

Firework Safety

When Things go BOOM in the Night - Fireworks Safety

For most of us, the Fourth of July is a time to enjoy the company of family and friends, having fun and creating memories - whether at home or up at the cabin.

But for some families, the holiday is a nightmare. Homes each year in Wisconsin are damaged by wayward fireworks. Thousands of people are injured in accidents.

At Mower Insurance, we want your holiday to be happy, but also safe. So here are some tips to help you protect yourself and your property on the Fourth.

Protecting yourself (and others)

·         To minimize the risk of injury, don’t use consumer fireworks. Attend a public display conducted by professionals in Chippewa Falls or elsewhere.

·         If using consumer fireworks, always follow instructions. Do not attempt to re-light “duds” or create homemade fireworks.

·         Never let children handle or light fireworks. Even sparklers, which burn at more than 1,000 degrees, can cause third-degree burns. Kids under the age of 15 account for approximately 40% of fireworks injuries, according to the U.S. Fire Administration.

·         A responsible adult should always be present when children - even teenagers - are around fireworks. More than half of fireworks injuries happen to those younger than 20 years old.

Protecting your home

·         According to the National Fire Protection Association, the best way to protect your home is to not use fireworks at home.

·         Remember, fireworks can cause grass fires and other types of blazes as well. Make sure you light fireworks in a safe area, away from homes and buildings, as well as other combustible material. Keep a fire extinguisher nearby in case of emergency.

·         Look out for tree limbs or bushes that could catch fire. Trimming vegetation to keep it away from your home is a good idea anyway, but it could save you from a catastrophic fire on the Fourth of July.

·         If your gutters have accumulated leaves, pine needles or other flammable material, clean them before using fireworks near your home.

·         Finally, if you won’t be home on the holiday, ask a neighbor to keep an eye on your house if others in your neighborhood will be using fireworks.

With some common sense and planning, the Fourth of July can be both safe and enjoyable for everyone. Whether you’re staying at home or heading up North, we hope you have a wonderful time celebrating our independence!

Firework Pet Safety

Keep your pets safe during the Fourth of July Fireworks

For most of us, the Fourth of July is a time to enjoy the pyrotechnics that mark the holiday. But for our pets, fireworks are another story. Many pets can be traumatized by the noisy rockets and firecrackers so many of us enjoy.

At Mower Insurance, we hope your holiday is happy and safe for you and your pets. So along with our other story about fireworks safety, here are some tips to help you protect your pets on the Fourth in Wisconsin, or elsewhere.

Protecting your pets

Many pets are very frightened by the loud noises caused by fireworks. If you can’t take them away from the noise, here are some pointers from the American Society for the Prevention of Cruelty to Animals that will help them have a more peaceful holiday.

·         Don’t take your pet to a public fireworks display. In addition to the noise, they may be spooked by the crowds.

·         If possible, leave your pet inside in a safe, secure room. Do not leave them outside, even if your yard is fenced. They may try to flee, and they may succeed; July 5 is a busy year at many animal shelters in Chippewa Falls, as dogs and cats are frequently found miles from their homes. Taking your pet on a walk early in the day can help tire them out.

·         Give your pets a comfortable place to rest, as well as plenty of food and water. You might even leave a TV or stereo on to drown out the fireworks. Provide soothing music, if possible. A favorite toy (or their favorite owner!) can help comfort them, too.

·         Make sure your pets have an ID tag or microchip, in case they get scared and escape.

·         Check with your veterinarian before giving your pet any medication intended to calm them. They may be able to provide you with a prescription or suggest alternatives.

·         And, of course, keep your pet away from used and unused fireworks.

With some common sense and planning, the Fourth of July can be both safe and enjoyable for everyone - and less scary for your pets. Whether you’re staying at home or heading up north, or elsewhere, we hope you have a wonderful time celebrating our independence!

How Insurance Works

Every day, every individual faces the risk of loss – physical loss, emotional loss, financial loss.  You buy a house; it could burn down.  You drive a car; you can be in an accident.  Knowing that risk of loss exists creates an uncertainty that makes planning difficult and diminishes the quality of life.

Insurance is a mechanism by which an individual or business can transfer risk.  By transferring some of the risk that is a natural part of modern life, you can enjoy peace of mind and are better able to focus your energies on other, more important aspects of life.

Only a portion of certain types of risk can be transferred.

·         Financial Risk:  Insurance only addresses financial loss.  It will not compensate for the sentimental value attached to the family photo album, for example.  It usually does not compensate for emotional loss.  And, do not expect compensation for you inconvenience.

·         Non-Speculative Risk:  Only certain types of financial losses can be transferred to an insurance company.  And individual cannot insure speculative risks, such as a loss in the stock market.

There are three types of financial risks that can be transferred to an insurance company.

o   The risk of loss of physical property

(Your car is totaled in an accident)

o   The risk of being found legally liable for the loss of someone else

(You cause an accident that totals your friend’s car)

o   The risk of financial loss that occurs due to disability or death

(You cannot work for six months because you were hurt in the accident)

·         Selected Portion:  Insurance is intended to cover only a portion of the financial loss.  Many insurance policies have deductibles as well as dollar limits.  In selecting limits, you decide how much of your risk to transfer to an insurance company

The individual who experiences an insured loss should not expect to be fully compensated for the loss; insurance is not designed to do that.  It will not compensate for a lot of intangibles, such as inconvenience.  And, in most cases, it will only pay for a portion of your financial loss.

The individual who buys good insurance never has a loss is the real winner in the insurance transaction.  That person has enjoyed the peace of mind that comes from proper insurance.  Peace of mind is the real product of the insurance transaction.