Umbrella coverage is a form of liability insurance. It provides protection for the policyholder when an incident occurs involving their home or vehicle that is not covered by their standard homeowner’s or auto policy. Residents of Jacksonville, FL, can utilize this type of coverage to safeguard their property and individuals on that property from personal injury or damage claims. Many of our clients at 925 Partners believe they don’t require umbrella coverage. However, there are numerous situations where it may be necessary, including the following:

1. Babysitting

Do you or your children babysit others’ kids? If a child gets injured while under your supervision or on your property, you could be responsible for a substantial medical bill. This is generally not covered by a traditional homeowner’s policy. Umbrella coverage can provide protection for you and the children you care for in your home.

2. Owning a Deck

It’s surprising how many people get injured while enjoying time on a friend’s back deck. Have you checked your home coverage to see if you’re protected against your deck collapsing or someone falling off during a festive gathering? If you’re not covered, umbrella coverage can provide the necessary protection.

3. Legal Suits

Certain types of umbrella coverage protect you against lawsuits. For instance, if you’re sued for slander or defamation, umbrella coverage can provide protection. It can also protect your children if they’re sued for an incident that occurs at school. If you’re concerned about potential lawsuits, umbrella coverage is a wise choice.

At 925 Partners, we specialize in crafting umbrella policies that provide comprehensive protection for our clients in Jacksonville, FL, against any incidents that occur to them or on their property. If you’re interested in comprehensive coverage, contact us today for more information.

Auto insurers dealing with the “pandemic price”

Across seemingly every news outlet, it’s hard to escape reports of inflation and rising consumer prices.

And, like other goods and services across the economy, auto insurance rates are a part of the conversation. Currently, many carriers are raising prices to account for unexpected costs—but what’s driving those decisions?

You guessed it. It’s primarily pandemic related, but perhaps not in the ways you might think. As you have conversations with your clients about rising auto insurance costs, the following may help you better explain what’s driving rates to help them better understand the situation.

A return to “normal”

Of course, we’re hardly back to “normal” as the world continues to wrestle with the pandemic, but driving behavior, particularly vehicle miles traveled, has essentially “normalized” and returned to pre-pandemic levels.

At the outset of the pandemic, miles driven dropped, claims fell, and insurers issued refunds/credits, lowered rates, or both. As 2021 unfolded, driving behavior picked up as did claims frequency and, in turn, insurers’ costs.¹Most auto insurers subsequently found themselves underpriced.

Rising repair and replacement costs

For insurers the past predicts the future. Generally speaking, insurers review historical data and trends to set prices for future expected costs. The pandemic, however, upended expected repair and replacement costs in ways that were challenging to anticipate. Case in point: unpredictable pandemic-related supply chain disruptions and labor shortages have driven claims costs up substantially.²

In fact, the Bureau of Labor Statistics reports that average expenditures for vehicle repairs have risen more than 4% over the last year, while used car and truck prices have skyrocketed by more than 40% over the same period.³

When you combine the uptick in vehicle miles driven and the related increase in claims with rising costs to cover those claims, carriers are paying a “pandemic price” that will affect rates throughout the auto insurance industry in the near term.

How agents can help

Knowledge is power, and while rate increases can be difficult for consumers to accept, as their trusted, expert adviser, you can provide valuable information and context to help your clients understand what’s driving these rate changes.

Consumers choose independent agents for their knowledge and guidance, and in challenging times like these, agents can help clear up confusion, provide expert counsel, and deliver the peace of mind consumers crave in uncertain times.

U.S. Federal Highway Administration, Vehicle Miles Traveled, Monthly Report: June 2021.
Insurance Information Institute, “Auto Insurance Rates Impacted By Labor Crunch, Supply Chain Disruptions,” June 2021.
U.S. Bureau of Labor Statistics, Consumer Price Index, Table 2: July 2021.
Manheim, Used Vehicle Value Index: June 2021.