Personal liability umbrella policies help safeguard you against financial hardship in the event of a lawsuit. They provide liability coverage that sits on top of your home and auto (and boat and second home if applicable). Umbrellas are available in million dollar increments from $1,000,000 to up to $10,000,000. Defense costs are also included- on top of the liability coverage and often the defense costs are higher than the damages awarded. The costs are low and the coverage deep. We believe the average family should have at least a $2,000,000 umbrella sitting over good auto and home liability limits. Here are four situations where you should consider even higher limits:
Homeowners with pools
From 2005-2014, there were an average of 3,536 fatal, unintentional drownings (non-boating related) annually in the United States- about ten deaths per day. About one in five people who die from drowning are children, aged 14 and younger. For every child who dies from drowning, another five receive emergency department care for nonfatal submersion injuries. More than 50% of drowning victims treated in emergency departments require hospitalization or transfer for further care. These nonfatal drowning injuries can cause severe brain damage that may result in long-term disabilities such as memory problems, learning disabilities, and permanent loss of basic functioning (e.g. permanent vegetative state).
Dog bites are the single largest cause of liability loss to insurance companies. Big dogs bite. Little dogs bite. In conclusion even the nicest of dogs can have a bad day- and the damage they do comes back to (ahem) bite it’s owners.
Parents of teenage drivers
The National Highway Transportation and Safety Administration reports that in 2015, 1,886 drivers aged 15-20 perished in auto accidents. An additional 195,000 were injured in car crashes, so young drivers (ages 15-20) account for 5.4% of total drivers but for 9% of those drivers involved in fatal crashes. An umbrella policy provides a serious layer of protection between you and all you have worked for.
Families with toys
Motorcycles, four-wheelers, snow mobiles, boats, jet skis- they sure are fun. But accidents resulting from their use can often be extensive and end up with expensive bodily injury claims. Again, use your umbrella to protect your home and family.
So if you are taking the time to read this and don’t have an umbrella policy, or you think your policy might have limits too low, give us a call to review. (781) 224-0909.