Umbrella Insurance is a secondary insurance policy that provides liability coverage over primary insurance policies, like Auto or Homeowners policies. Personal Umbrella Policies (PUPs) add million(s) of dollars of coverage to your insurance portfolio, sheltering your current assets and future wages from catastrophic claims.
While Homeowners and Auto Insurance protects thousands of dollars of your assets, Umbrella Insurance protects millions.
In this blog, we'll address the following:
How high of limits should I buy on my Umbrella policy?
What are common Umbrella claims examples?
What's covered by Umbrella policies that would otherwise be excluded?
Limits of PUPs: How much is too much?
The approach to determining the limit of insurance that's right for you is to review previous claims, weighing the risk of claims to the cost of the PUP. The following are example claims and the claims amounts:
Lifelong bodily injury without negligence: ~$500,000. i.e. Guest child losing sight in an eye after paintballing in your backyard.
Personal injury with negligence: ~$1,000,000. i.e. family member making false remarks about a restaurant that suffers loss of income.
Short-term bodily injury with negligence: ~$1,000,000. i.e. Tenant loses lung capacity due to mold of your rental, losing scholarship.
Lifelong bodily injury with negligence: ~$10,000,000. i.e. Guest child suffering reconstructive surgery after being bitten by family dog.
Death with negligence: $10,000,000+. i.e. Your daughter babysitting a child who drowned.
Note: these claims dollar amounts are estimates and can vary greatly in magnitude.
Choosing limits of an Umbrella can be difficult given the subtleties of multi-million dollar Umbrella claims, state laws, & claimant punitive damages. When in doubt, more coverage will provide more protection and more peace of mind.
Added Coverage under a PUP
One of the best aspects of an Umbrella policy is that it 'drops down' or adds perils/types of incidents that would not be covered otherwise. Safeco, a Liberty Mutual Company, offers the following added perils covered:
Libel, slander, or defamation of character resulting from social media
Personal Defense lawsuits
Auto Liability coverage abroad
Non-owned (rented) Recreational Vehicle Liability
Non-Profit Director/Officer Liability Coverage
Don't let your world turn upside down. Contact an Adviser to guide you through your policies.
You’ll never have to wonder if Safeco Insurance will be there when you need your carrier most. From the smallest fender-bender to a storm-damaged home, Safeco has stood ready during the most trying moments for almost 90 years. Backed by the financial strength of Liberty Mutual Insurance, Safeco has friendly employees across the country dedicated to meeting the needs of people like you.
Fenix Risk Management is an independent insurance agency proudly serving families & businesses in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Florida. Fenix Risk Management is appointed with the carrier, Safeco Insurance, mentioned in the blog.
Simmy is an adviser at Fenix Risk Management, helping businesses and individuals navigate their insurance portfolios.
Note: the opinions expressed in this blog are that of the author, not of any other individual or organization referenced.