I get many questions concerning Umbrella Liability Insurance coverage and wondering whether it is something that one should add to their insurance portfolio. The easiest way to answer that question is with a question; “Is protecting your assets in the event of a catastrophic loss something that is important to you?”
Many think “Well something like this will never happen to me”. The fact is that for a catastrophic loss to occur really doesn’t take much and unfortunately it happens all too often. Below is an actual case that occurred that I share only to illustrate the simple things that can add up to a major event.
Real-World Case Study: Drowsy Driver Put Lives in Peril
Tired of the unrelenting snowfall, best couple friends, Lori and Scott and Kim and Jay, decided it was the perfect time for a road trip to Las Vegas. After a busy weekend with good memories made, the four headed home with Scott at the wheel. A short while later, Scott dozed off, awoke suddenly and over-corrected, hitting two oncoming cars. All of those involved sustained serious trauma, including head injuries, lung collapse and multiple major fractures. Two of the injured were airlifted to the hospital for immediate treatment. In addition to hospital stays, recovery would include physical and cognitive therapy and Jay needed extensive reconstructive surgery.
After Scott’s auto liability limits were exhausted, his standalone personal umbrella policy responded to cover their care. The umbrella carrier ended up paying a claim in the amount of $750,000.
In most cases for under $300 per year you can have a $1,000,000 extra layer of protection over your auto, home and other underlying liability exposures. Well worth looking into if you have assets worth more than your underlying liability coverage. Amounts available in one million increments to $5,000,000 and excess is available over that amount.