Unexpected incidents like multi-vehicle accidents, dog bites, or injuries occurring on private property are increasingly threatening the financial stability of Georgia residents. Mercury Insurance reports that bodily injury payouts have been rising steadily since the pandemic began, with the average liability claim amount increasing by 35%.
To address this growing concern, Mercury has introduced a new personal umbrella insurance policy specifically for Georgians. The policy offers additional protection beyond the limits of standard auto and home insurance. It is designed to shield policyholders from significant financial liability due to large claims that exceed traditional policy limits.
Umbrella insurance acts as an extra layer of coverage when the liability limits of auto or home insurance are surpassed.
For example, if someone with a homeowners policy liability limit of $300,000 is found responsible for $1 million in damages due to an accident on their property, their homeowners’ policy might cover part of the damages, but the remaining $700,000 could fall on the policyholder unless umbrella coverage is in place. Mercury’s umbrella insurance helps cover this gap, protecting personal assets from substantial financial loss.
The growing need for such coverage has been driven in part by a trend called "social inflation," where the cost of liability claims rises faster than general economic inflation.
In the past decade, the severity of personal auto liability claims has increased by 78%, while the Consumer Price Index rose by only 29%. This pattern of rising claim costs highlights the unpredictability and scale of potential financial risks, further underscoring the importance of umbrella insurance.
Mercury’s umbrella insurance offers coverage ranging from $1 million to $5 million, with the option to include $1 million in uninsured motorist coverage for accidents involving uninsured drivers. The policy also provides discounts for policyholders who bundle auto, homeowners, and umbrella policies together, making it more affordable.
