—- Liability Limits —-
The line of protection you place between a mistake you may make and the guy you have injured who now thinks he deserves to take everything you own!

Your liability limits on your auto insurance look something like this: 15/30/5, or 50/100/25, or 100/300/50.  Sometimes they’re listed like this:

LIABILITY LIMITS:
$50,000 injury per occurrence
$100,000 injury per accident
$50,000 property damage

However they’re listed, it’s important to understand and periodically review your limits.  Auto insurance liability coverage generally pays for the damage you do to another party when the accident is your fault.  Consult your policy or your agent for specifics, but “injury” usually applies to things like hospital and doctor bills, lost time from work, pain and suffering, chiropractor and rehab treatment, and any other loss the party has suffered as a result of the accident.  Coverage has limitations and exclusions, but it can be fairly broad in it’s application.

The limits define the maximum amount amount of money the company will pay out on your behalf.  Here’s how those three numbers play out.  The first number is the limit that the company will pay for the injuries to an individual.  The second is the limit that the company will pay for the injuries in the entire accident.  (remember “injuries” can include all those other things I listed above)  The final number is the limit that the company will pay any property damage you do as a result of the accident. This can include the other guy’s car, house, street lamp, store front or whatever you happen to hit.

You can be held liable for the entire dollar amount of damage you caused in the accident whether your insurance pays it all or not. This means that if you wipe out a Mercedes Benz worth $55,000 and you have only a $5,000, $10,000 or $25,000 limit for property damage, you could end up paying the difference out of your own pocket… or out of your future wages if you don’t have enough cash to cover the bill! (Please read that last sentence again!)

I always recommend a minimum of 100/300/100 coverage to my policyholders.  I don’t know who is going to wipe somebody out next month.  And yes, accidents happen in my agency every week!  Most are minor; some are not so minor!

For just a few dollars a month you can increase your coverage from the state minimum of 15/30/5 (in California) to 100/300/100.

In addition to increasing your limits you should also consider a LIABILITY UMBRELLA that will cover you even beyond the limits you select.

Please take just a few minutes this week to review your liability limits.  Call your agent, call me, or just at least take a look at what you have.  Carrying limits that are too low can put your entire life savings and net worth at risk.  It’s not worth saving just a few dollars a month to take that kind of risk!


Dennis Volz Insurance Agency dv
10791 Jamacha Bl, Suite 1
Spring Valley, CA 91978
OFFICE: 619-670-1000
    eMail:Dennis@DennisVolzInsurance.com
    Websites: Company Site: DennisVolzInsurance.com


All posts on The San Diego Insurance Blog contain only a general description of coverages and is not your insurance contract. Details of coverage or limits will vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

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Electrical Outlet Safety

by Dennis Volz

Electrical receptacle outlets in walls and floors may present shock and electrical fire hazards to consumers. The U.S. Consumer Product Safety Commission estimates that 3,900 injuries associated with electrical receptacle outlets are treated in hospital emergency rooms each year. Approximately a third of these injuries occur when young children insert metal objects, such as hair pins and keys, into the outlet, resulting in electric shock or burn injuries to the hand or finger. CPSC also estimates that electric receptacles are involved in 5,300 fires annually which claim 40 lives and injured 110 consumers.

Older homes may have receptacles which are damaged or which, otherwise, may have deteriorated over the years. In one case of a damaged receptacle, a woman suffered severe burns to her hand as she was plugging in a floor lamp. Part of the plastic faceplate of the outlet had broken away, allowing the prongs of the plug to bridge from the electrical contacts to the grounded strap, resulting in intense electrical arcing. Outlets also deteriorate from repeated use, from plugging-in and unplugging appliances as is often done in kitchens and bathrooms. As a result, when plugs fit loosely into receptacles, especially the two-prong ungrounded type, they may slip partially or completely out of the receptable with only slight movement of the attached cord. Receptacles in this condition may overheat and pose a serious fire hazard; if covered by a curtain or drape, the fire hazard is even greater.

Consumers should have a qualified person replace deteriorated and damaged receptacles and, at the same time, upgrade their home electrical system to present safety standards. The simplest and most effective method to protect against electrocution is through the installation of ground- fault circuit interrupters (GFCIs) (as shown in FIGURE 3). If you wish to receive a copy of the Commission’s fact sheet on GFCls, send a postcard to “Ground-Fault Circuit Interrupters, Washington, D.C. 20207,” and a copy will be sent promptly.

Another method of protection in the home is to install 3-wire receptacles which will accept either 2- or 3-prong plugs (as shown in FIGURE 2). This method, however, requires a grounding conductor which may or may not be available in the outlet box. The least acceptable method is installing another 2-wire receptacle that requires the use of an adapter for accepting 3-wire plugs (as shown in FIGURE 1). Even thought the tab on the adapter may be properly connected to the cover-plate screw, the grounding path may not be adequate to protect against ground faults.

Different Electrical Outlets

Outlets with poor internal contacts or loose wire terminals may become overheated and emit sparks. Even a receptacle with nothing plugged into it may run hot if it is passing current through to other outlets on the same circuit. To prevent damage to receptacles, appliances should be switched-off before unplugging from a receptacle.

  • Have a qualified electrician replace damaged receptacles or those which feel hot, emit smoke or sparks, those with loose fiffing plugs or those where plugged-in lamps flicker or fail to light.
  • Do not unplug appliances by pulling on the cord at an angle. The brittle plastic face of the recepacle may crack nd break away, leaving live parts of the receptacle exposed.

    To protect young children, parents should consider some precautions:

    • Insert plastic safety caps into unused outlets within reach of young children.
    • Be sure that plugs are inserted completely into receptacles so that no part of the prongs are exposed.

    Reprinted from the Consumer Product Safety Commission


    Dennis Volz Insurance Agency dv
    10791 Jamacha Bl, Suite 1
    Spring Valley, CA 91978
    OFFICE: 619-670-1000
        eMail:Dennis@DennisVolzInsurance.com
        Websites: Company Site: DennisVolzInsurance.com


    All posts on The San Diego Insurance Blog contain only a general description of coverages and is not your insurance contract. Details of coverage or limits will vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

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