Personal Umbrella Policy - a Lifesaver When You Have It!

Do you live in a house? Do you drive a car?  Do you entertain?  Do you have a boat, a motorcycle or other toys?  If so, you are at risk.  Do you think you don’t need one because you earn an average income?   People think it won’t happen to them but let’s take a look at this scenario.

A teacher is driving to work, striking and severely injuring a pedestrian who is a single mother of two.  The teacher earns $40,000 a year, owns a home worth $300,000 and has a $100,000 auto limit.  The pedestrian sues the teacher for $800,000 for hospital bills, lost wages, child care and suffering. 

What happens without a personal umbrella?  The teacher’s auto carrier will probably agree to release the $100,000 policy limit and the pedestrian’s attorney will pursue the rest from the teacher.  Don’t forget the hospital will want their money.  The teacher will need to hire an attorney which will come out of his own pocket.  Will the teacher need to declare bankruptcy?  Sell his home?  Get a second job?

What happens with a personal umbrella?  With a $1,000,000 personal umbrella limit (with an average premium of $165 –based on no kids driving with 2 cars and house), the umbrella’s insurance company adjusters will work with the primary auto carrier and the pedestrian’s counsel to settle the pedestrian’s costs and demands.  The policy limits are available in addition to defense cost. 

Justin M. Cook

President, Curtin Insurance Agency, Inc

Bouvier Insurance - Curtin 

80 Norwich New London Tpke

Uncasville, CT 06382

Local: 860-848-2201 x319

Fax: 1-860-561-8778

jcook@binsurance.com