In the world of personal insurance, finding the right balance between comprehensive coverage and affordable premiums can be challenging. We recently had the opportunity to help a family overcome this exact dilemma. Our team worked diligently to restructure their insurance portfolio, resulting in increased protection and decreased overall costs.
The Situation
Our clients, a family with significant assets, found themselves in a precarious position. Their existing insurance coverage was inadequate, particularly in terms of liability protection. Their coverage limits didn't align with their net worth, leaving them exposed to potential financial risks.
Our Approach
After a thorough assessment of the family's situation, we identified several key areas for improvement:
Liability Coverage: We recognized the need for a substantial increase in liability protection.
Home Insurance: The existing home insurance policy required significant adjustments.
Auto Insurance: We saw an opportunity to optimize the auto insurance strategy.
Emerging Risks: In today's digital age, we identified a gap in protection against cyber threats.
The Results
Our team implemented a comprehensive strategy that addressed all the family's insurance needs:
Added Umbrella Policy: We introduced a robust umbrella policy providing $10,000,000 in personal liability coverage. This policy also included $2,000,000 of uninsured and underinsured motorist coverage, offering an extra layer of protection.
Increased Home Insurance: We boosted the home insurance coverage by 150%. The new policy includes guaranteed, unlimited rebuild coverage, ensuring the family's home is fully protected regardless of future construction costs.
Restructured Deductibles: We realigned the deductible strategy for both home and auto insurance to better match the family's risk tolerance. This adjustment played a crucial role in optimizing their overall insurance costs.
Personal Cyber Crime Coverage: Recognizing the growing threat of cyber-crimes, we added coverage up to $100,000 to protect against digital risks.
The Outcome: Enhanced Protection at Lower Costs
By strategically increasing the family's risk assumption at lower levels, we were able to significantly enhance their protection against catastrophic losses. The restructured portfolio now offers superior coverage across all areas, particularly for high-impact events that posed the greatest financial risk.
The most remarkable aspect of this case? We achieved all of these improvements while simultaneously lowering the family's overall insurance costs.
Our commitment at Cottingham & Butler to providing tailored, comprehensive insurance solutions that protect our clients' assets and peace of mind, all while optimizing their insurance spend.