General Questions

Which deductible must I choose when I buy insurance?
What exactly is umbrella insurance?

Which deductible must I choose when I buy insurance?

The following considerations will help you make your choice:

You can change the deductible just as you can change the coverage. A $100 or $250 deductible causes a higher premium, but lower costs in case of a claim.
If you can easily absorb an unforeseen loss of $500 or $1,000, a deductible of this kind will get you a 10% to 15% discount on the premium, depending on the type of insurance.
Most insurers grant a discount of 10% to 15% to clients who have not made a claim in three years. Also, when submitting a claim for $100, you may lose $150 of discount over three years.
Many insurers increase the premium by 10 to 15% or more for client who have submitted more than three claims under the same insurance policy in the last three to five years. That’s why we suggest that you keep a clean file with no small claim and take advantage of the higher deductible discounts.
After many claims (small or large), some insurance companies increase the deductibles to $1,000 or $2,500, without granting a premium discount. The management fees for a claim (even if small) cost the insurer a minimum of $250 to $300 (fees for the adjuster and other experts).
If you decide to increase the deductible for all your insurance contracts, the discount for all of your policies over several years will probably offset any small losses that may incur under one or the other policies.
Careful: beyond a $1,000 deductible, discounts decrease. Be sure that choosing such a deductible is relevant for you.

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What exactly is umbrella insurance?

Umbrella insurance has different names depending on the insurer:

Additional civil liability insurance for individuals
Additional civil liability insurance
Umbrella policy for individuals

It covers further civil liability losses when the limits of your car, home or boat insurance have been exceeded. Second, it covers you against certain risks not included in your basic insurance policies. For that reason, it offers you personal coverage against catastrophic loss.

This coverage is valid around the world, it is not too expensive and it can be taken out in $1 million amounts above the basic amounts offered by your primary insurer.

Here are a few examples of accidents or events not insured by your primary insurance as well as some cases of catastrophic loss:

You accuse your cleaning lady of stealing your jewelry. She sues you a substantial amount for damages. Personal injury experienced by a third party, including the consequences of defamatory or offensive written and spoken language or language that invades your privacy rights, is usually excluded from your home insurance.
You are on vacation in the south and damage a motorcycle you rented. The owner claims damages resulting from this accident.
While traveling abroad, you fall asleep with a cigarette in your hand and cause a fire in the hotel where you are staying, which results in considerable damage.
While playing hockey, your son causes serious brain damage to another player

Actual events:

A 16-year-old girl climbs onto the hands of the son of the insured and dives into a four-foot-deep swimming pool. She is quadriplegic as a result. A ruling for $1.5 million in 1998. Your home insurance covers you but the same ruling today might be for more than $2 million.
The insured is owner and operator of a recreational boat. The boat hits a buoy which collides with the legs of a 27-year-old woman sitting on the deck of the boat with her legs hanging in the water. Her right leg was severely injured and the left leg had to be amputated. The owner of the boat was sued for several million dollars

We recommend this type of insurance especially for all those who:

travel abroad often, particularly to the United States;
own a swimming pool, motor boat or sailboat;
have young children or drivers;
live in a residential building with businesses;
work as volunteers in non-profit organizations, in sports, education or with youth

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