Common Real-Life Scenarios That Are Better Protected by Umbrella Insurance

Common Real-Life Scenarios That Are Better Protected by Umbrella Insurance

December 01, 2021

Are you and your assets properly protected? Without personal umbrella insurance, you very well might not be. Personal umbrella insurance is coverage that ensures you are protected against unexpected accidents. And without it, you leave yourself exposed to claims. 

Consider the following… During the holidays it’s common to order packages and have them shipped to your home for convenience. What would happen if a delivery person slipped and fell on your sidewalk and suffered an injury? It wasn’t intentional, but that doesn’t mean that the delivery person wouldn’t file a lawsuit — even though it was an accident. 

Homeowner’s insurance can help, sure. But there’s a limit to what’s covered. When your other insurance isn’t enough, you may be covered by umbrella insurance. It’s an extra level of protection for both you and your assets. 

What is Personal Umbrella Insurance

You never know when it might rain. So, just like the name implies, this type of policy acts like an umbrella, providing protection against a wide range of potential financial dangers and unforeseeable mishaps. 

It can offer coverage if you incur claim expenses that exceed the limits for your homeowners, auto, or other personal liability insurance policies. Here are a few issues umbrella coverage can protect you from: 

  • Injuries you cause in a car accident
  • Injuries someone suffers on your property
  • Property damage you cause in an accident
  • Property damage your pet causes
  • Property damage a dependent or child causes
  • Attorney fees and other legal costs
  • And more! 

Who Needs Umbrella Coverage? 

Umbrella insurance is for anyone with assets that need protection. Since even engaging in everyday activities can put you at risk for a lawsuit, it’s vital to take into consideration your total personal assets and your potential for personal risks when determining if you need coverage and exactly how much you might need.

A few more reasons to seek umbrella insurance coverage are: 

  1. You have significant savings or other assets and you want to protect against potential losses of income. 
  2. You are a landlord, own property (especially investment property), or a business. 
  3. You participate in activities that could easily injure others (e.g., skiing, surfing, or coaching youth sports). 
  4. You own items, property or pets that can lead to injury lawsuits (e.g., pools, trampolines, guns or certain dog breeds). 
  5. You have inexperienced drivers in your household.

5 Real Life Incidents that Personal Umbrella Insurance Can Help With

Adequate excess liability limits can help protect you when unforeseen results in a liability judgment against you. For example, take a look at these 5 real life scenarios from Chubb.

Incident #1. While taking items to his trash, a man was attacked by a neighbor’s three dogs, which had escaped through an open gate on the neighbor’s property. The man sustained multiple lacerations to both legs and a lower back injury.

Judgment: $7.7 million

State jurisdiction: Florida

Incident #2. After completing his work in the attic of a customer, a heating and cooling service technician fell through the floor of the attic, falling nearly 20 feet. He sustained injuries to his back, hand, foot, ribs, shoulder and wrist.

Judgment: $8.9 million

State jurisdiction: New York

Incident #3. While traversing a crosswalk, a woman was struck by an oncoming vehicle. The impact resulted in a traumatic brain injury and damage to one leg that ultimately necessitated an above-the-knee amputation.

Judgment: $26.2 million

State jurisdiction: California

Incident #4. While riding his motorcycle down a highway, a man was struck by a vehicle traveling the wrong way. He sustained multiple fractures, including his arms, collarbone, pelvis, and jaw. The injuries also resulted in infertility, pain and suffering, mental anguish, and lost wages. The vehicle occupants, all minors, were intoxicated at the time and had left a party at the defendant’s home, where alcohol was being served.

Judgment: $47.5 million

State jurisdiction: Florida

Incident #5. While riding his motorcycle through an intersection, an individual was struck by a vehicle that ran a red light. The impact caused the man to be thrown from the motorcycle and to pass away at the scene from the resulting injuries.  The family of the victim sought wrongful death, compensatory and punitive damages from the driver for motor vehicle negligence.

Judgment: $50 million

State jurisdiction: South Carolina

Please note that these are not Chubb claims, but they are sourced from actual court rulings in the noted state jurisdictions. 

Pasadena Insurance Agency, Inc is an elite Cornerstone Agency for Chubb Insurance. We can help you with any Chubb policy.

Get Umbrella Insurance from Pasadena Insurance Agency, Inc. 

The good news is because personal umbrella insurance is for those rare, rainy days, it’s as inexpensive as it is necessary. And our licensed agents would be happy to assist you in reviewing your options and finding the best combination of coverage and value for your budget and your family's needs. 

Contact us today so we can help protect you for all your rainy days.