Personal Umbrella Policy Prevents Liability Loss


Deciding to acquire a personal umbrella policy is a responsible decision that can result in avoiding significant liability loss.

Let’s honor umbrellas, one of the world’s most beneficial inventions! They’re typically available in a wide variety of styles, shapes & sizes. In the same way that umbrellas keep us dry in the rain, personal umbrella insurance coverage shields you from the financial repercussions of a substantial liability loss.

With the assistance of Cincinnati Insurance Company, here are some considerations to make while determining whether or not to purchase umbrella insurance. Here is an example of a scenario that some may find themselves in at some point in their lives, and how umbrella insurance would make a difference.

A Basic Policy with No Umbrella Insurance Policy Included:

Someone sues you. For the relevant basic policy (auto or home), you have $400,000 in liability coverage. Ultimately, you are liable for $1,000,000 in damages. The basic insurance pays the maximum amount it can. The remaining 600,000 is, therefore, your responsibility.

A Basic Policy with Umbrella Insurance Policy Included:

Someone sues you. You have $1,000,000 in umbrella insurance, in addition to $400,000 in liability coverage for the relevant basic policy (auto or home). You are held accountable for $1,000,000 in damages. Because the $400,000 underlying limit has been reached, the umbrella policy pays the remaining $600,000. Therefore, you. have fulfilled your obligation.

A Possibility of Significant Liability Loss

It could be challenging to notice motorcycles. It might be challenging to determine the speed and distance of an approaching motorcycle due to the significantly smaller profile of motorcycles compared to cars.

Real-World Application

Simply possessing property, operating a vehicle, owning a dog, boat, or pool, chaperoning children as a parent, posting a critical review online, or even running into some odd or unplanned circumstance such as getting into an accident while renting a car abroad, can put you in these scenarios. Large liability loss may occur for reasons other than just being wealthy or well-known.

Reasons For Large Verdicts

The big business versus the individual mentality, heartfelt tales that affect jurors’ emotions, and the rise of litigation funding, where third parties invest in lawsuits by paying the parties or attorneys in exchange for a share of the judgment or settlement. These are just some of the factors that can cause juries to render large verdicts.

A Sense of Peace

Personal umbrella liability insurance offers a solid foundation of protection and peace of mind because the severity of harm can be up to chance, and the likelihood of loss cannot be known. Get in touch with an independent insurance agent who can assist you in locating the umbrella insurance you require to. safeguard your assets and potential earnings based on your lifestyle, interests, and activities.

This article’s hypothetical example claim is provided purely for educational reasons. Each claim is adjusted based on its own set of specific facts. Depending on the specifics of each claim, the policy’s terms, limitations, and exclusions will determine applicability. Reach out to The Feltner Group to start exploring your umbrella insurance policy options today!