California Umbrella Insurance – Consider a Personal Umbrella Policy to protect your assets!

In today’s litigious society, it’s more important than ever to protect the assets you have worked so hard to accumulate. One small mistake, or error in judgment, could place those assets at risk.

One affordable option to provide additional coverage is to purchase a personal umbrella policy (PUP). A PUP is a policy that sits above, or extends the coverage limits on your home or auto policy. A PUP can also extend coverage to rental properties, watercraft, recreational vehicles, motorcycles, etc. to cover your specific needs. The funds are designed to kick in when the policy limits of your underlying coverage are fully exhausted, and there are still damages to pay out.

The PUP is available in $1 million increments up to a maximum of $10 million. In addition to extending the limits of coverage the PUP usually broadens the coverage, or drops down to provide coverage on things that may typically be excluded in the primary policy.

The following are real examples of incidents when a personal umbrella would be utilized:

  1. A claim involved an insured driver traveling to the mountains with friends when he tried to avoid a deer, which caused the vehicle to leave the roadway and strike a tree. The guest passengers in the vehicle were severely injured and the insured’s $500k limits were exhausted quickly. Despite the fact that the injured parties were friends of the insured the extent of their injuries and amount of outstanding medical bills caused them to hire an attorney and bring suit against the insured.
  2. An insured turned out of a post office when a motorcycle broadsided his vehicle. The motorcyclist was killed and it was later determined that the insured failed to yield the right of way. The primary limits of $250K and a $1 million umbrella were exhausted. The plaintiff’s attorney is also seeking the insured’s personal assets.
  3. An insured lent his boat to his adult son so he could entertain friends at a nearby lake. During the outing a few of the occupants decided to go swimming. One of the occupants dove into the water and inadvertently collided with another occupant that was swimming near the boat. The person was knocked unconscious and drowned. The insured’s primary policy was $500k, and the claim is worth in excess of $3 million due to lost earnings.
  4. There have also been a large number of claims arising from people working on an insured’s home. A claim involved a landscaper that tripped on a loose landscaping stone. The landscaper fell and allegedly suffered debilitating neck and back injuries. The insured’s underlying policy is $500k with a $1million umbrella. The claim has an estimated settlement value of $750k.

Qualifying insured’s can pay as little as $175 per year for a $1 million dollar Personal Umbrella Policy. To learn more about personal umbrella policies, or to request a free no obligation quote, please Contact Us today.

Due to Governor Newsom’s “Stay at Home” order, our offices will be closed. If you have a claim to file, please note the carriers claims phone numbers listed under “Client Services”. Also, if you have a critical insurance issue, and leave a voice message at the main phone line, we will get back to you as soon as we can. We are working to have our employees set up remotely to assist you. We appreciate your patience during this critical time.