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Need an Umbrella?
By David Peel
Even if it’s not
raining, you may
need an umbrella.
“ U m b r e l l a
insurance,” that is.
As an injury attorney
who sees terrible
accidents
and
tragedies
every
single week, I commend to you the idea
of umbrella insurance.
Umbrella insurance is basically
additional liability insurance. It is
designed to help protect you and yours
from major claims or lawsuits. Having
$1,000,000.00 to pay out if you cause a
huge loss protects your assets.
This unique kind of insurance
provides additional liability coverage
above the limits of your homeowners,
auto, boat, ATV, and farm insurance
policies. It affords more liability
coverage on any rental units you may
own. It kicks in when the liability limits
on these other policies has been
exhausted. Umbrella coverage also
covers the odder claims that may be
excluded by other liability policies
including: false arrest, libel and slander.
Examples might include:
Injuries to other parties due to a
serious car accident where you are at
fault, like rear-ending a full school
bus.
You show a gun to a guest and it goes
off, causing them to lose their foot.
Injuries sustained by a guest in your
home due to a fall in that hole your
son dug.
Harm caused to the postal worker as a
result of your dog attacking him.
Damage claims incurred when your
pet rips a friend's priceless oriental rug
to shreds.
Injuries sustained by a neighbor's child
who fell off your trampoline.
A child is found dead in your
swimming pool.
Someone trips over a crack in the
sidewalk of your rental property and
sues you for damages.
The odd cases of slander (an injurious
spoken statement that is false) or libel
(the same, only in written form) are
indeed rare, but not unheard of.
Let's say you rear-end that school bus.
The cost of the injuries you cause to
others is $500,000. Let's further say that
the Bodily Injury limit on your auto
insurance is a generous $300,000. Your
auto policy will cover $300,000 of the
injuries. Your assets are in jeopardy for
the rest. But your umbrella policy will
cover the amount above the limit set in
your auto policy, up to the limit you
choose for your umbrella policy (usually
$1,000,000.00).
Umbrella insurance is not that
expensive. However, be aware that it
requires a higher minimum bodily injury
limit (usually $250,000-300,000) on
your auto policy to qualify for an
umbrella policy.
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February 2015