Yes, You Might Need an Umbrella Policy. Here’s Why…

In 2013, there were 285,000 liability lawsuits*. When accidents happen, you can lose your savings, assets, future wages and more if you are sued for a loss which is not covered. Here are just a few examples of some customers who have experienced accidents and umbrella policy coverage first-hand:

Umbrella Policy Coverage While Parking Your Car

A customer parked their vehicle and opened their door. Without warning, a bicyclist hit the opened door. The bicyclist suffered severe injuries and was taken by ambulance to the hospital. Due to his injuries, the bicyclist was out of work for an extended period of time and resulted in a lawsuit. The settlement of the lawsuit was for $525,000, and the homeowner’s policy only had $250,000 in coverage. The customers Umbrella policy covered the remaining $275,000.

Umbrella Policy Coverage While Driving a Boat

A customer’s boat was being operated by a teenager while enjoying tubing on the water. A tuber suddenly came off the tube and was accidentally struck by the boat while in the water. The tuber survived, but unfortunately suffered a skull fracture and severe scarring resulting in a liability claim against the boat owner. The final settlement was for $750,000, with $300,000 being paid from the homeowner’s policy and $450,000 from their umbrella policy.

According to the National Association of Insurance Commissioners, only 37 percent of homeowners had an umbrella policy in 2007, meaning 63 percent of all homeowners customers were exposed to the potential for a liability lawsuit that could ruin their financial security. In addition to the emotional trauma suffered, these customers could also have experienced financial hardship if they did not have Umbrella coverage.

To find out if you have the proper coverage to whether a lawsuit form an accident, talk to one of our personal insurance consultants to discuss your needs here.

* http://www.uscourts.gov/Statistics/JudicialBusiness/2013.aspx