Personal Umbrella Liability Insurance Quotes

April 7, 2006

Why should you protect yourself and your family with a personal umbrella policy?

Liability lawsuits are common and often lead to expensive jury awards.  Your home, automobiles, and other valuable assets that you have spent a lifetime working for could be lost as a result of a liability suit.  You could be sued if you accidentally injure someone or damage their property. 

The greater the risk factors, the more you will need to protect yourself.  For example owning a personal watercraft, having a young driver in the family, owning a swimming pool, & owning a recreational vehicle may increase your risk.

Many people assume their homeowner, automobile and boat liability policies provide adequate coverage to protect their assets. However, this is not always the case. Court awards in the millions are common when tragedies, such as severe injury or loss of life, occur.  The personal umbrella liability insurance policy is designed to protect you and your family against a catastrophic lawsuit or judgment.  It provides expanded coverage and increases the amount of your primary liability protection beyond the basic coverage provided under your homeowner, automobile and boat insurance policies.  It closes gaps in your liability coverage.

What does personal umbrella liability insurance policy cover?

A typical personal umbrella liability insurance policy provides the protection up to the coverage limits specified in the policy.  It provides protection for claims of personal injuries or property damage caused by you, members of your family/household, or hazards on your property, for which you are found legally liable. It provides personal liability coverage for incidents which occur on or off your property. It provides additional protection above your basic auto policy for auto-related liabilities, protection against non-business-related personal injury claims, invasion of privacy, defamation of character, slander, libel, wrongful entry or eviction, and false arrest. Often legal defense costs are included for a covered loss, including lawyers’ fees and associated court cost.  Typically the policy is extended to worldwide coverage for claims brought against you and family members of your household.  There is coverage for occasional use of non-owned recreational vehicles, such as golf carts, ATV’s, or snowmobiles. 

How does your personal umbrella insurance policy work?

Here is an example:

Coverage: You have liability insurance on your automobile policy for $300,000. You also have additional liability protection through umbrella coverage of $1,000,000.

Incident: On the way home from work, you run a red light and accidentally hit a vehicle.  The driver and passenger are seriously injured and sue you for damages of $800,000.  The court finds you liable for the full amount.

Results: The liability on your automobile policy pays the first $300,000. Once depleted, your umbrella policy pays the final $500,000.

What other types of claims can occur?

A delivery person trips and falls over a child’s bicycle left in the driveway and you are found negligent. 

A minor car accident turns into a major headache when the driver you hit sues for pain and suffering.

A member of your family forgets to turn off the stove. The fire that results damages not only your home, but also others in your neighborhood.

A homeowner association board meeting involves a contested educational issue. You attend, and in voicing your opposition to one board member’s actions, you make an impassioned speech. There’s a slander suit.

You can never tell when some small action or oversight will lead to a lawsuit. Fighting them can be terribly expensive; they can also place your personal property and assets at extreme risk. Especially if the primary liability limits of your homeowner, automobile and boat policies don’t adequately protect you. The more you earn, the more you have at risk, the more you need to protect. If your coverage limits are not adequate, your assets may be sold and your income garnished until your debt is paid.

You should consider a personal umbrella liability insurance policy.