Other Uses For Umbrellas: Umbrella Policies Defined/The forgotten coverage
July 25, 2016
What Other Uses Do Umbrellas Have Besides Rain Protection? Covering your Family with Additional Insurance!
- Do you have a family?
- Do you own a home or car?
- Do you own a boat or personal watercraft or ATV?
- Do you want to protect your future earnings?
- Do you want to protect your assets against a lawsuit or judgment?
Did you know that for a few extra dollars per month you could purchase $1 million or more in insurance coverage? Many people in Oklahoma have never heard of an umbrella policy, but they are a critical piece of coverage in protecting you financially. Who needs to buy this coverage?? Anyone in Oklahoma that could be sued that drives a car, rents or owns a home, boat, motorcycle, ATV, vacation home or owns a business or owns a pet…. most people!
What does and Umbrella Policy cover??
An umbrella policy offers coverage for claims that may be made against you that are in excess of the limits of your base policies. A single judgment can exceed your savings, the value of your home and other assets…putting your FUTURE earnings at risk. Many people in Oklahoma and other states think that they have to have a large income or sizeable assets to really need an umbrella policy but that is just not the case. Even renter’s are vulnerable to garnishments or future wages.
Umbrella policies also cover defense costs. Besides the threat of a costly judgment, you will also have to pay to defend yourself, even if the suit is frivolous. A defense attorney may charge anywhere from $100 to $800 per hour…but a personal umbrella pays defense costs in addition to your limit of coverage. An umbrella policy is an affordable way to obtain a lot of coverage. In most cases in Oklahoma, a Personal Umbrella averages just $250 in premium…that’s just $20 per month for $1 million in personal liability protection. Many policies cost less.
Some real life examples of Personal Umbrella claims from one of our industry partners; RLI Insurance: picture yourself as the “Insured”
Claim Scenario #1
The Insured’s 18 year old son was driving the Insured’s car on a short trip to the store with his girlfriend, the Claimant. The car left the roadway and struck a tree. The Insured’s son told the police that a vehicle cut him off, but there were no witnesses and no evidence of any impact with another car. The Claimant has no recollection of the accident. The Claimant, a 19 year old college student, was hospitalized for over a month with multiple fractures and internal injuries. She was in a wheelchair but is now able to walk with crutches and continues with physical therapy. She has a right drop foot as a result of the injuries. The Insured’s personal umbrella policy limit was paid.
Claim Scenario #2
Claimant, age 2, was on the Insureds’ property with his grandparents who were there to care for 2 horses owned by the Insured’s. The Insured’s were out of town on vacation. The Claimant was kicked by one of the horses, taken to the emergency room, and then life-flighted to a large hospital. The Claimant was given a 5% chance of survival and underwent surgery for a cracked skull (a piece of which was missing) with 30% damage to the right side of his brain. He survived and is residing in a neighboring state at a rehabilitation center. A large payment was made under the personal umbrella policy.
Claim Scenario #3
The Insured hosted a party at his home. Among the guests was the Claimant, a family friend who was also the Insured’s financial advisor. The Claimant brought his wife, infant, and 2 year old child to the party. The Insured gave the claimant a jug of spring water for him to use to mix formula for the infant. The 2 year old child also had a drink. Shortly thereafter, the children became ill. The family left the party, and then took the children to the hospital. The hospital requested the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the word “weed killer” printed on it. The Insured had apparently mixed a solution of weed killer in a jug similar to the ones used for spring water and mistakenly given it to the Claimant. The infant died and the 2 year child survived after being in critical condition. The Personal Umbrella policy limits were paid out.
You can purchase a personal umbrella to cover your personal liability but we also offer umbrella policies for your businesses here in Oklahoma. Our staff at Perimeter Insurance can answer all your umbrella “what if” questions for Oklahoma residents. We offer a complimentary review of your policies and would be glad to help you discover how an umbrella policy can give you peace of mind that you have your family and business covered properly.
Call us today for a free quote at 405-778-8880 or email us at firstname.lastname@example.org. Get your umbrella in place before it storms!