Umbrella insurance and a rainy day

  Consider the following example:

A commuter on his way home runs a red light, and severely injures a bicyclist. The bicyclist sues the commuter for $750,000 and wins. This could be you. If you are thinking you’re the unfortunate bicycle rider, think again: You could be the commuter; who is wondering where are you going to find several hundred thousand dollars. While your auto policy covered $500,000, you’re responsible for the balance.

Don’t worry, this is only an example, and there’s still time to consider personal umbrella insurance.

What is personal umbrella insurance?


Personal umbrella insurance is protection above and beyond your auto, homeowners and boating policies. Since umbrella policies are accessed after the liability coverage from your homeowners, automobile or boating policies are exceeded; umbrella policies usually are inexpensive. A million-dollar or larger policy costs between $200-300 dollars per year.

Following are two of the coverages typically offered by a personal umbrella policy:

• Personal liability. This is the coverage illustrated in the example. However, it covers more than bodily injury; for example, property damage and damages caused by slander, libel, defamation, detention, confinement and related allegations. Most umbrella policies cover some exposures not covered by your auto and homeowner policies; such as your liability for a vehicle rented out of the country or damage to property of others in your care and control.

• Defense. This coverage will pay to defend claims or lawsuits for damages based on personal injury or property damage (e.g., expenses incurred in defense, premiums on bonds required in the lawsuit, reimbursement for lost earning and more).

This is just a brief overview. We can review your insurance policies to determine if a personal umbrella policy is right for you



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