Skip to main content

Umbrella Insurance: Is it Necessary?

Umbrella Insurance: Is it Necessary?

When you finally get to sit down and relax in the evening and flip on the television, every other commercial is an attorney. They urge you to file a lawsuit if you were in an auto accident or if you were injured on someone’s property. When that injury has occurred on your property or the accident was your fault there is a real possibility that you will be sued.

What is it?

A Personal Umbrella Policy is an excess liability policy that extends over your liability policies, such as your home and auto, to provide an extra layer of protection for you and your family against large liability claims.

What does it pay for?

If the cost of the accident goes above your liability limits you will be responsible for the difference if you do not have a Personal Umbrella Policy. Most Umbrella policies will even pay for your attorney if you are sued for a loss that is covered by the policy.

Who could benefit from an Umbrella Policy?

While everyone can benefit from the protection of a Personal Umbrella Policy, if you fall into any of the categories below you should strongly consider this policy:

  • Own a Home
  • Own a Car
  • Own Toys – ATV, Boat, Motorcycle, etc..
  • Have Children
  • Have a Pet
  • Provide Alcohol to Guests
  • Have a Swimming Pool or Trampoline
  • Have Playground Equipment
  • Have a High Net Worth or Assets
  • Have Rental Properties
  • Coach Youth Sports Teams
  • Entertain Guests at Home

Claim Examples

Provided by Auto Owners Insurance

• Insured driver rear ended a vehicle stopped to make a left turn, forcing it into an oncoming lane as 16 motorcycles were going past. The motorcycles were caught up into the accident, injuring four motorcyclists and two occupants of the claimant’s auto.
• Claimant left insured’s premises after consuming alcohol, and was subsequently involved in an auto accident. Claimant sued insured on theory of liquor liability.
• Insured boat driver and named insured are facing two wrongful death claims and a bodily injury claim as the result of a boating accident. The driver of the insured’s boat whipped the victims, ages 12, 9, and 7, into a raft constructed of barrels supporting a wooden deck.
• Our insured’s son was driving a non-owned vehicle, which was uninsured, when he was involved in this loss. The claimant was sitting on the trunk on the outside of the vehicle while it was in motion. Claimant slipped and fell, striking her head on the pavement after suffering a severe head injury.
• Injury to claimant while attending insured’s birthday party. Claimant was shot in the eye with a paintball.
• Insured was walking his dog on a leash. Stopped to talk to neighbor and both insured’s dog and neighbor’s dog were barking. Both insured and neighbor pulled on the insured’s dog leash and the neighbor lost his balance, fell and sustained bodily injury. Claim filed against insured.
• Insured’s wife was going over a hill and came upon an emergency vehicle. She attempted to slow down but slid and lost control of her vehicle, hitting the claimant’s vehicle, tow EMTs, a firefighter and two police officers.
• Two year old claimant caught his hand in insured’s boat lift and sustained amputation of the tips of his ring finger and little finger.
• Claimant broke his neck and became a quadriplegic during a tug-of-war game during “Greek Week”. Our insured’s son is a member and elected officer of one of the fraternities that sponsored “Greek Week” activities.