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Songer Insurance Agency, Inc. Blog

All You Ever Wanted to Know About Insurance

Personal Umbrella

Personal Umbrella Overview: 

Auto and homeowners policies provide adequate liability protection for many people. Why, therefore, would anyone purchase a personal umbrella liability policy? The primary reason is to protect personal assets. Umbrellas provide an actual layer of liability beyond that offered by homeowners, renters, personal auto, or standalone personal liability policies. 

Think of a young couple starting in their careers. Both work and their combined income are good. However, being prudent, they drive older cars and save your money to purchase a home. A child enters the picture; Then another. Both parents continue to work. 

Because of the family income level rises they're able to afford new vehicles and enjoy increasingly affluent lifestyle. Since the family lives Close To a large body of water, It seems reasonable to purchase seems reasonable to buy a twenty-two-foot Inboard boat. The whole family enjoys a day on the water. The condo at their favorite where they vacation spot is the next purchase. It will pay for itself since they intend to rent it out during the time they don't use it themselves. The condo is near a large winter resort area, So naturally two snowmobiles. 

In the meantime, the children are growing up. The oldest, a boy has got his drivers license and his parents to purchase a car, a four-door sedan, from the job the school into his after school job. After two years, the next child, a girl, begins to drive and her parents purchase a car for her as well.

However, she's not the safe, careful driver her brother is. She likes nothing better to pile several of her friends in the car and cruise around. A favorite activity is to text your friends in the backseat while driving. She loses control of the vehicle and the plows into an oncoming car. ?A passenger and other vehicles killed, and two of the daughter's friends are critically injured. One recovers, but one will be paralyzed for life from the waist down.v

The family's auto policy has limits for bodily injury of $100,000 per person and $300,000 per accident and $100,000 property damage limits. The policy pays its limits and then bows out of the picture. Homeowners liability does not apply in circumstances such as these. But the fact that the auto policy has maxed out its limits does not stop a lawsuit from the estate of the passenger in the oncoming vehicle and friendship does not prevent a suit from the paralyze friends parents. After all, the family has assets (home, condo, boat, vehicles, etc. that can be attached. 

Having a personal umbrella policy in place might help alleviate some or all of the financial loss as well as contribute to defense costs. If you have the assets of any value, you should highly consider purchasing a personal umbrella policy. They are very inexpensive and can offer you adequate limits to protect your personal assets. 

If you'd like more information on personal umbrella coverage please contact us anytime, Songer Insurance Agency Inc. located at 2955 Robert C. Byrd Dr. Beckley West Virginia. We offer comprehensive personal umbrellas up to limits of 25 million dollars.