It has long been a myth that umbrella policies are only for high-net worth families and not necessary for most individuals. This notion is false as most people are at-first for claims and lawsuits that surpass their underlying insurance policy coverages.

It is imperative that families with children, rental properties, watercraft, etc carry an umbrella policy. Most umbrella policies are inexpensive and can begin at just over $150 for an additional $1,000,000 in liability protection.

Below are some real-life examples of umbrella claims:

1. 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.
2. An insured’s daughter hated math class as well as the teacher. The daughter made several “disparaging” and false remarks about her teacher online. The teacher sued the parents for personal injury and $750,000 was paid.
3. The insured’s tenant claims she became ill from carbon monoxide poisoning resulting from a faulty furnace. The tenant claimed permanent brain damage and demanded $750,000.
4. A 28-year old engineer dove into a friend’s above ground swimming pool struck his head on the bottom and, as a result became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000.
5. A couple allowed their teenage children to have a party. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the homeowners and personal umbrella responded to this claim for over $3,000,000.

Contact us for a no-obligation review of your insurance and umbrella quote.