Umbrella policies extend the liability coverage provided by the homeowners and automobile insurance contracts.  Umbrella policies are sold with a variety of limits, commonly $1 million or $5 million.  The underlying policies provide the first dollars in a liability claim and the umbrella is available to any remaining amounts until the amount paid by all policies reaches the umbrella limit.

Although auto accidents cause most of the injuries that result in huge monetary settlements paid by umbrella liability insurance, plenty of other calamities can put your assents at risk.

Consider these real life cases reported by Kiplinger's Insurance Magazine:

• A 40-year-old window washer broke his heel in a fall after a down spout he was holding onto broke away from the house he was working on. Although the worker was found partially responsible, the fall cost the homeowner $1.2 million.
• A 22-year-old suffered permanent eye damage when he was struck by a golf ball.  He sued, claiming that the golfer who hit the ball had failed to look out for other players.  The errant shot cost the golfer $160,000.

• A Professional dancer suffered permanent knee damage-and an end to her career-when she was knocked down on a beginner's ski slope.  She offered to settle for the $300,000 covered by the defendant's insurance but was rebuffed.  The case went to trial; she was awarded $2.2 million.
• A woman suffered severe cuts when her leg was hit by the propeller of a boat she was attempting to board. She sued, claiming that the boat began to move before she was safely aboard.  The injury cost the boat owner $175,000.
• At a swim party, a 16 year old dove and hit his head on the bottom of the pool.  He became a quadriplegic, and the case resulted in a $1.5 million settlement against the homeowner.

The cost for umbrella protection is comparatively small considering the dollar protection it provides.  Just call us if you would like to discuss this vital coverage.