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Umbrella Policies- Good for Any Weather

By March 31, 2014February 21st, 2020Archived Blogs, Personal Insurance

When it’s raining, you grab your umbrella before walking out the door; simple enough concept, right? How about if it’s sunny out- would you keep your umbrella on-hand even then?

When it comes to insurance, many people view umbrella insurance policies as unnecessary. After all, why spend the extra money on something that you will probably never use?

…But then again, when it’s sunny out, who’s thinking about the rain?

Umbrella policies offer an additional layer of liability protection that can be used when your auto or home liability policy doesn’t provide enough protection. These are the days that you never see coming- the sudden rain clouds that appear after a day of sunshine.

A few examples of the storms that an umbrella policy can help weather:

  • Parents supervised activities at their home after their teenage daughters invited friends over for a party. Two guests were involved in a vehicular accident while driving home-the vehicle’s passenger was paralyzed from the chest down- Settlement: $2.5 Million
  • An 11-year-old boy was kicked in the face by a privately-owned horse while at a stable. The stable owners were found responsible due to negligent supervision- Settlement: $2.3 Million
  • A 3-year-old boy died after he drowned in his family’s pool while under the supervision of the 17 year-old female defendant. The defendant was found guilty of failing to properly supervise the minor entrusted in her care, negligently allowing the boy to enter the pool area without supervision- Settlement: $1.5 Million

In today’s litigious society, if a defendant is found only 1% responsible for an accident, they can be held liable for 100% of the damages to the injured parties. When those damages are in the millions and even tens of millions of dollars, you can only hope that your liability protection is sufficient to protect your current and future assets at risk. *

Still not sold on the importance of an umbrella policy? Consider these everyday exposures that can result in a lawsuit:

  • Driving a car or letting someone else use your car
  • A dinner party or other get-togethers at your home
  • Driving in a carpool
  • Owning or renting a home, a vacation home or rental properties
  • Inexperienced drivers in your household
  • Serving as a volunteer in a Board or other activity

If any of the above applies to you, you are at risk. An Umbrella Policy is inexpensive, and the small premium is less costly than risking the assets that you have spent a lifetime building and your future assets that could be in peril. Coverage limits of $1Million to $100 Million are available to protect your assets and lifestyle against the action of a third party.

As the old adage goes, “when it rains, it pours”

… And when it pours, no one wants to be caught without an umbrella.

*source= ACE Group

*The information provided regarding verdicts was drawn both from company loss experience as well as from a variety of third-party internet and other sources considered to be generally reliable, but ACE PRS has made no effort to independently verify any of the third-party data. The verdict information should not be considered typical or predictive of outcomes in other cases.

Before purchase umbrella insurance coverage, click the below button to access the personal umbrella coverage checklist from



Author: Kevin Brooks, Personal Insurance Account Executive

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