What is personal umbrella insurance?
Personal umbrella insurance provides coverage beyond your homeowner or auto policy by adding an extra layer of liability coverage. Coverage is provided in amounts of $1,000,000 increments. Umbrella insurance also covers situations that may not be covered by another policy such as slander or libel.
The umbrella policy coverage "kicks in" where you’re existing coverage ends, up to limit of the umbrella policy purchased.
Personal Umbrella Protection covers:
- Operating most motor vehicles, including cars, RV’s, motorcycles, pickup trucks, and most watercraft
- Incidents involving any property covered by your basic homeowners policy.
- Incidents alleging slander, libel, defamation of character, invasion of privacy, even false arrest.
- Business liability coverage is provided if covered by your basic homeowners policy.
Who Needs a Personal Umbrella?
The moral of this claim story is that serious injury to a sympathetic injured party may lead to liability when reason might dictate otherwise.
Shortly after sunset, an Insured was driving her minivan on a 2 lane road near an intersection when she hit a bicycle ridden by a 14 year old girl who suddenly crossed in front of her. The accident occurred on the roadway adjacent to a park where football and soccer practice had just let out. There were six witnesses to the accident, including the girl’s best friend who was riding with her. Had they ridden to the next intersection, they could have crossed with a light and crosswalk, but because they were in a hurry, they decided to cross where they did.
All witnesses agree that the insured van was traveling well within the 45 mph speed limit. The witnesses also agree that the 70 year old insured did not apply her brakes or take any evasive action nor did the girl look both ways before crossing the road. Four of five witnesses said that RLI’s driver probably did not have time to react and avoid the accident.
The girl suffered a brain stem injury, head fracture, brain hemorrhage, & multiple compound fractures of the right leg. She remains on a feeding tube and school records show that she attends a special education program. The defense position was that the insured’s failure to act was reasonable in that she had no time to see and react to the sudden movement of the bicyclist. A suit was filed and the final decision was that the insured should have had time to observe the plaintiff, and take evasive action. The claim was ultimately paying $681,000.
