Umbrella Excess Liability Insurance

What is an Umbrella Policy?

  • You would be covered in the event that a judgment against you exceeds your Homeowner’s or Auto insurance limits.
  • You would have protection for damages in the case of libel and other situations specifically excluded by your Homeowner’s and Auto insurance.
  • Protect your assets!  Bodily Injury or Property Damage judgements can place a lien on your property!
  • Protect your future earnings! Wages can be garnished for Bodily Injury & Property Damage judgements!
  • Bodily injury or property damage caused by you or other household family members, including children, for which you are liable or become liable due to an accident.
  • Personal liability coverage for incidents that occur on or off your premises.
  • Additional protection limits above your Auto policy against auto-related liabilities.
  • Protection against non-business related personal injury liabilities if you are sued for slander, libel, humiliation, wrongful eviction, false arrest, invasion of privacy, wrongful entry, or malicious prosecution.
  • Coverage for the legal defense costs of a covered loss.
  • Non-owned Watercraft provides coverage for use of a non-owned watercraft, including liability coverage for boats you charter from another party.
  • Limits can be purchased in $1,000,000 increments. Minimum limits start at $1,000,000 up to $10,000,000.

Real Life Examples

Example #1

During a heavy rainstorm, a driver’s visibility was hampered. The driver crossed the center line and hit an approaching vehicle head-on, fatally injuring one occupant and seriously injuring three others. The $100,000 per person/$300,000 per occurrence bodily injury limits of the driver’s auto policy were insufficient to settle all claims. However, thanks to the added protection of a Personal Liability Umbrella Policy, an additional $1 million was available to satisfy the claim.

Example #2

While playing golf, a man swung a club and accidentally struck a friend in the eye. The friend lost the eye and required further reconstructive surgery. The claim settlement went well beyond the $300,000 liability limit of the family’s homeowner’s policy. The remainder was settled through the additional $1 million coverage provided by a Personal Liability Umbrella Policy.

Example #3

While driving his tractor down a road, a farmer’s vision became obstructed by equipment as he attempted to turn. The tractor collided with a motorcycle, causing permanent injuries to the cyclist. The claim exhausted the primary liability limits of the insured’s Farm Policy. Fortunately, the farmer was protected for the excess amount under his Farm Umbrella Policy.

Example #4

While driving his parent’s vehicle, a teenager answers his cell phone and drives through a stop sign striking another vehicle. The driver of the other vehicle is an elderly man and sustains a broken hip among other injuries. Three months later the man was unable to recover from the injuries and dies. The wife of the elderly man sues the parents of the teenage driver. The medical bills have already exceeded the parent’s auto policy limit of $100,000 per person. The judge issued a settlement of $1.1 million dollars. Fortunately, the parents had purchased a Personal Umbrella policy from their agent the previous year. If not for the Umbrella Policy, the parents would have lost their Home, Vehicles, and any other assets they would have had to sell to meet the settlement.

Example #5

A 40-year-old window washer broke his heel in a fall after a downspout he was holding onto broke away from the house on which he was working. Although the worker was found partially responsible, the fall cost the homeowner $1.2 million.

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