The simple answer is that most of the time we don’t. In fact, if we can go through life without ever needing to call on that coverage we will count ourselves lucky. However, if we ever need it and don’t have it, we will be sorry indeed. Here are several examples of when we might need an umbrella:
- Driving a car
- Pet ownership
- Attractive nuisances on your property
- Bad-mouthing others – Liable or Slander
- Owning rental property
More on the value of an Umbrella Policy
Driving a Car
Most people drive cars their entire lives without ever having a serious accident or injuring anyone. But, if you injure or kill someone, you may be liable for paying hundreds of thousands or even millions of dollars. Even if you are not adjudged guilty, you may spend more for attorneys than your car policy will provide.
Owning a Pet
Our pets are generally friendly, but what if your dog bites someone. You could be taken to court and forced to pay a large sum of money, perhaps more than your Homeowner’s policy limits. Your Umbrella policy will step in where your Homeowners policy stops and keep you from having to spend your own money or even declaring bankruptcy.
These are things on your property that people want to use or play on or around. Such things as swings, jungle gyms, climbing ropes and other playground type items would fall in this category. In addition, new construction, excavation and dumpsters are hazards that people, especially children, like to explore. These items present abnormal opportunities for injury.
Liable and Slander
With all of the ways that you can communicate today, including social media, there are many opportunities to liable (written) someone or even slander (verbal) them. It seems that the frequency of these incidents continues to increase. Nevertheless, just because lots of people are doing it, doesn’t make it acceptable and you can be sued.
Owning Rental Property
You may own a small rental property where the liability coverage is added to your Homeowners policy. Serious injuries for your tenants, can exceed the limit on your Homeowners policy and an Umbrella policy can step in to pick up the excess.