Why adding umbrella insurance to your policy is a must

Posted in General, Auto, Home

When it comes to protecting the things that matter most, you may want to consider adding an extra layer of protection with Umbrella insurance. An Umbrella policy offers the extra coverage you need to protect your family, your assets and your future earnings from the threat of a large lawsuit. Below we share common scenarios in which having an Umbrella policy could potentially provide additional coverage once you’ve exhausted your current auto and home limits.

Example: You are sued for causing an auto accident that resulted in injury and death

It’s winter and you’re driving to work when you come up to an intersection that has black ice, causing you to slide through the intersection and hit a family of four crossing the street. That family is sent to the hospital with serious and life-threatening injuries; one family member dies. Your underlying policy limits are quickly exhausted by medical bills and a court-imposed award against you for the death of one of the family members. Without an Umbrella policy, would you have the money to hire an attorney? Would you have the funds needed to pay a jury award or settlement?

Example: You are sued because a child drowned in your pool

You recently installed an above-ground pool in your backyard and haven’t had time to build a fence around it. While you are at work, a wandering neighborhood child saw the pool, began to climb up the outside wall of the pool, fell in the pool and drowned. Without an Umbrella policy, would you be able to afford the jury award or settlement costs for that child’s death?

Example: You are sued because your daughter caused an accident that resulted in permanent injuries

Your 17-year-old daughter reaches for her cell phone while driving to view a Snapchat. In that moment she looked away, the cars ahead of her suddenly brake. She looks up at the last second to take evasive action. She instinctively steers to the left, crosses the center line, and hits another car head-on all in less than five seconds. The other party has significant and lasting injuries leading to permanent disability. You are sued for the injuries, medical bills and loss of earnings of the other party, and the jury award is well beyond the limits of your auto policy. Your future wages are garnished at $2,000 a month for the next 20 years, plus you still must pay for that high-priced attorney. An Umbrella policy may have protected your future earnings and taken care of defending you in court.

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Example: You are sued because the candle you were burning started a fire in your apartment building

You rent an apartment on the 3rd floor of a multi-unit building. You forget to blow out a candle before going to bed. The candle starts a fire resulting in structural damage to the building, smoke and soot damage to seven units on your floor and below, and water damage to several units below yours. The building owner sues you for damage to the building and loss of rents because all the tenants are now displaced for several months. Other tenants sue you for the costs associated with cleaning or replacing their belongings, the costs of moving and the increase in rent they now pay. Lucky for you, you have a renters policy, but is the liability limit enough?

The possibilities are endless for what could go wrong. Accidents happen. That’s why an Umbrella policy is so important. Contact your independent insurance agent today and discuss your options for adding Umbrella insurance.

Disclaimer: This article is for informational and suggestion purposes only. If insurance policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies.

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