When it comes to protecting your family and personal assets, personal umbrella policies are a critical component to all financial planning strategies.  In a highly-litigious society, personal liability lawsuits are no longer limited only to the affluent - but instead, continue to pose a greater, ever-growing  threat to middle income families than ever before. 

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Fact:  The average lawsuit for personal injury or negligence is $2,900,000.*

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​Because of the increased likelihood of a personal injury-related lawsuit, it becomes easy to see the abundance of potential exposures occurring throughout daily life.  Consider the following scenarios: 

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Scenario:  Homeowner Accident

A guest at your home dives into the unmarked shallow end of your pool and suffers debilitating injuries and paralysis.  You are found liable and personally sued for $1,900,000.

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Fact:  Most homeowner policies only provide $300,000 of liability protection.  Without a personal umbrella policy, you will pay $1,600,000 out of pocket.

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Scenario:  Renters Accident

As a renter, you accidently leave a coffee maker plugged in after leaving for work.  The appliance catches fire and destroys down six adjacent apartments.  As a result, you are found to be liable and personally sued for $1,300,000.

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Fact: Most renters policies only provide $300,000 of liability protection. Without a personal umbrella policy, you will pay $1,000,000 out of pocket.           

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Scenario:  Watercraft Accident

You invite some friends to join you at the lake for an afternoon of waterskiing.  While pulling a skier with your boat, you accidentally cut of corner too sharply and throw two guests overboard.  One guest suffers only minor injuries but the other guest is knocked unconscious and suffers debilitating brain injuries.   As a result of your negligence, you are personally sued for $3,700,000. 

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Fact: Most watercraft policies only provide $100,000 of liability protection. Without a personal umbrella policy, you will pay $3,600,000 out of pocket.​​

 

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Scenario:  Automobile Accident

While texting on the way to work one morning, you fail to stop at red light - in turn, accidentally colliding with a bicyclist.  The cyclist suffers significant injuries that result in life-long paralysis below the waist.  As a result, you are held liable and personally sued for $5,600,000. 

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Fact:  Most automobile policies only provide $300,000 of liability coverage.  Without a personal umbrella, you will pay $5,300,000 out of pocket.

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* Source:  Insurance Information Institute 2010

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