Home and auto insurance policies may not have high enough limits for certain claims. That is why personal umbrella insurance exists. Consider a few real-life examples of where a personal umbrella insurance policy would have been a benefit:
The Clumsy Plumber
A client had a plumber and trim carpenter working on their house at the same time. The plumber was walking down the stairs after finishing a job and grabbed the handrail that the carpenter was working on. The handrail wasn’t secured yet, gave way, and the plumber fell, severely injuring himself. He sued the homeowner for injuries and lost pay due to extensive time off work.
Too Helpful
A kind neighbor picked up the mail for a vacationing neighbor, leaving it inside the vacationing neighbor’s home. Unfamiliar with their sticky front door, she failed to pull it all the way shut when leaving. It was wintertime and the wind blew the door open and exposed the interior to freezing weather. The next day all pipes were frozen, burst, and water flooded all levels. The vacationing neighbor’s insurance company (not the vacationing neighbor) sued to recover damages.
Jumping Good Time
A trampoline…need I say more? Without pointing blame, the facts are that, as fun as they may be, people, many times young children, can be seriously injured while using a trampoline. As a result, homeowners are sometimes sued. Personal injury cases such as these can exceed the homeowner’s personal liability insurance limits.
Auto Accidents
As the CEO’s opening statement suggests, any car accident has the potential to surpass the limits of an auto insurance policy. Vehicles are easy to be fixed, but people aren’t. These accidents can be costly, and multi-vehicle crashes are not uncommon. An insurance company is only liable for the maximum policy limit, after which the client is responsible for any remaining settlement.
