Skip to main content

What is Umbrella Insurance? Why is it so Important?

Do you have an umbrella policy? Umbrella Insurance is additional liability coverage for your home, renters, dwelling(s) & auto policies in the situation that you exceed your current policy coverages and is something we highly recommend to all of our clients. Below are a few examples of when an umbrella could/would come into play…

*** A hillside on the insured’s property was covered with concrete to prevent erosion. The concrete had been installed before the insured purchased the property. Approximately 5 feet of the concrete fell to the neighboring property knocking the claimant’s home from its foundation. The resulting claim was settled for $970,000.

*** The insured’s 18 year old son was driving the insured’s car on a short trip to the store with his girlfriend. He lost control of the car and struck a tree. The insured’s son told the police that a vehicle cut him off, but there were no witnesses and no evidence of any impact with another car. His girlfriend, a 19 year old college student, was hospitalized for over a month with multiple fractures and internal injuries. She was in a wheelchair but is now able to walk with crutches and continues with physical therapy. She has a right drop foot as a result of the injuries. The insured’s personal umbrella policy limit was paid.

*** A babysitter left a 5 month old infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the infant’s parents $11,000,000.

The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies.

For less than the cost of a cup of coffee a day, most people can purchase a Personal Umbrella Policy with a limit of $1,000,000 or $2,000,000.

 Please contact us for your FREE quote today.


****Please note, there is a Commercial Umbrella policy available for our clients with business insurance. Call our office to find out more information. We look forward to speaking with you. ****

Skip to content