INSURANCE – What you need to know about the American Market

Whether you’re still in Germany preparing for your move to the United States or already living here, learning a new insurance market is critical. Some insurance is compulsory regardless of country – like third party liability for driving legally on any road – but other insurance, although not regulated, is smart to have. Some considerations to make when moving abroad include cultural differences, whether or not you are moving to a litigious society, and finally the type of insurance coverages that are available in that market.

Throughout the process of expatriating and finding yourself in a new country, you must also face new realities. By and large, you’ve probably read about cultural differences and understand that things won’t be the same as back home - all part of the adventure and a time for personal growth. However, this should not be a time for putting your financial health at risk. In Germany, you may be accustomed to having general personal liability and everyone generally having some level of coverage – this is not the case in the U.S.

As if this particular difference wasn’t enough, the U.S. is also known throughout the world for being a litigious society, with people ready to enter lawsuits at every turn. While some believe this to be a myth and a dying trend, the numbers suggest otherwise. According to data sets, on average, the U.S. has 1.3 million active lawyers for every 40,000 citizens. When we break that number down, the ratio comes out to 65 actively working lawyers for every 2 citizens. With this in mind, it’s critical to think about your insurance needs.

There are some coverage types that are recommended to purchase – regardless of legal necessity. Auto, home, and umbrella liability insurance are all coverages that everyone should have. Auto and Umbrella coverages can help protect you from the unexpected and ultimately, protect your assets. Home coverage spans from homeowners to landlord coverage, with options for renter’s too. Auto protection affords you protection to your vehicle, medical coverage for yourself, those in your vehicle and potentially others that may be injured, as well as some added bonuses, like new car replacement.

Liability limits in the U.S. are undoubtedly not as high as those in Europe, where personal liability offers you 10€ million in minimum protection. Umbrella insurance protects you from any potential lawsuits. It offers additional protection by increasing liability limits beyond the coverage that is normally offered through personal auto insurance. For instance with your auto coverage you may have a liability limit of $100,000. With umbrella coverage, you are extending your liability coverage up to $5 million in damages. Ultimately, safeguarding yourself (and your family) from the potential of financial ruin when living in another country will give you complete peace of mind. Now you can focus on the adventure and growth – either professionally or personally.

For more Information visit www.clements.com