Everything can change in the blink of an eye: The importance of umbrella policies

Written by
July 16th, 2012

In the blink of an eye your life can be turned upside down by unforeseen events and things can change your life forever.  Today, more than ever, umbrella policies are a way to further protect yourself from those unforeseen circumstances.  Umbrella policies provide a minimum $1 million in additional liability coverage and can also provide some extra peace of mind for events that may seem unbearable.

These stories illustrate how an umbrella policy can protect you:  

  • A 65-to-70-year-old couple was traveling home after a holiday weekend, driving in two vehicles, one following the other. A few hours into the trip on a two-lane rural highway, the wife crossed the centerline in the vehicle she was driving and struck another vehicle head-on. She died at the scene. The other driver was a married mother of one who died nine days later. Witnesses were not able to explain why the woman crossed the centerline, and unfortunately, lab samples that may have indicated a medical condition were lost.

The injured woman incurred $250,000 in medical expenses and never regained consciousness. She was employed at the time of her death and her family would no longer benefit from her income.

The couple had $300,000 single limits on their primary policy and a $1 million umbrella which provided some financial security for the husband after losing his wife.

  • A business owner was transporting equipment with a semi and trailer on a two-lane rural highway, following a string of vehicles. A truck directly ahead of the business owner suddenly slowed for a left-turning vehicle ahead. The vehicle in front of the truck had already swerved onto the shoulder and stopped to avoid striking the turning vehicle. The business owner veered into the oncoming lane to avoid hitting those in front of him; this caused another collision in which a person was seriously injured and became permanently disabled.

The business owner had $1 million single limits, with a $5 million umbrella. Imagine the value of this claim. Imagine the stress the business owner was going through after this accident. Consider the extra sense of security he had with additional coverage provided by his umbrella policy.

Unfortunately, accidents like these happen every day. People who don’t have the extra coverage an umbrella policy provides also don’t have the peace of mind it provides. They risk losing assets they worked for their entire lives. People who have umbrella policies, and more importantly, have used them, understand the cost is worth every penny.

Learn more about how R&R Insurance can help provide the coverage you need.

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