Why buy an Umbrella policy?
You may say, “I already have Home, Auto and/or Watercraft insurance, why do I need a Personal Umbrella Policy?” The answer is simple; umbrella policies provide increased liability coverage. While you may have some liability coverage, in the event of an accident, the base policy coverage will provide only a limited amount of protection for bodily injury and property damage.
No matter who you are or what you do, liability exposure is a part of everyday life and everyone is at risk. The reality is, you don’t have to be a millionaire to be sued like one.
What could be at risk?
Any assets you have could be at risk if you are found to be liable for damages. Consider if you have any of the following that may need coverage:
- Future wages
- Pension
- 401k
- Savings accounts
- Vehicles
- Real estate holdings
- Potential inheritance
What does an Umbrella Policy cover?
In addition to increasing liability limits, a typical Personal Umbrella Policy provides:
- Worldwide coverage
- Protection against claims that may not be fully covered by your underlying policies. (for Homeowners, Auto and Watercraft Liability)
- Coverage for defense costs and attorneys’ fees associated with claims against you that are covered by your Personal Umbrella Policy but not covered by your primary policies (these expenses are paid in addition to your policy limit.)
Who's covered by an Umbrella Policy?
- You and your spouse
- Resident relatives
- Anyone under 21 living with you for whom you are responsible
Claims Examples:
- A policyholder’s teenage child was leaving a football game with three friends in the car. They turned left in front of an oncoming vehicle. The injuries to the three friends and the occupants of the other vehicle exceeded the Liability coverage of the insured’s Personal Auto policy. The Umbrella policy provided coverage to settle the excess claims.
- A policyholder’s eight-year-old child made false online posts about their teacher. The story was picked up by local news and the teacher placed on leave before the allegations were found to be false. The Umbrella’s Personal Injury coverage paid to settle the teacher’s lawsuit for Libel.
- A three-year-old girl was attacked by her grandmother’s dog. She lost vision in her eye and received permanent scarring. The out-of-court settlement was $750,000.
Protect yourself from the unknown. Check your insurance liability policy limits and consider adding a Personal Umbrella.
Liability Risk Exposures
Not everyone is exposed to the same liability risks but there are several common risks such as:
- Swimming pools
- Dogs
- Guns
- Boats
- ATVs / Snowmobiles
- Defamation
- Owning a Vehicle
Liability Risk Statistics
- 60% of people in the U.S. own a dog, and 1 in 5 dog bites are serious enough to require medical attention.
- 90% of lawsuits stem from auto accidents.
- More than 1/3 of homes in the U.S. with children have at least one gun and most are left unlocked and unloaded.
Benefits of the Personal Umbrella Policy:
With the Pioneer State Mutual Personal Umbrella Policy you can have $1,000,000 in additional coverage (beyond the base policy liability limits), often for just a few cents a day. A Personal Umbrella Policy is a high value product for little cost, considering the security and protection it provides you and your family.
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This brochure is intended to be a broad summary of the insurance coverages provided by a Personal Umbrella policy. The information here is subject to policy terms and exclusions, and does not replace your policy language. Read your full policy carefully and ask your Independent Insurance Agent if you have specific questions.
Learn more about umbrella insurance with Pioneer State Mutual.