Accidents are a normal part of life. Usually these accidents are small and easily resolved, but not always. There are moments where accidents result in severe consequences for all parties involved.
While home insurance covers around $100,000 in liability for you and your family, this coverage isn’t always enough. There are accidents that can cause huge damages that won’t be covered under a basic homeowner’s policy. These are just a few examples.
Wreck While Carpooling
Say you’re taking your son and his soccer team out to eat after a game. You have five kids plus your son in the car. On the way, one of the children screams. You veer, slamming into the car in the next lane.
Not only would you as the driver be held liable for your son’s injuries, but also the injuries of the other children and the occupants of the other car. Even one person’s medical bills can be thousands of dollars. On top of the other injuries and possible lawsuits from upset parents, you could be looking at hundreds of thousands owed. With a personal umbrella policy, the difference between what you owe and the limits of your car insurance liability should be covered.
An Accident at a Pool Party
Other accidents can happen right at home. Any event with a lot of people provides a host of liability risks, from fights to slips and falls. Imagine someone throws a pool party for a birthday. The kids have been told not to run by the pool, but children often don’t listen. One slips on the corner, hits their head and falls into the water, nearly drowning. By the time the kid is pulled out, an ambulance arrived and he’s carted off to the hospital, it’s determined that the boy is paralyzed from the neck down and may never recover. The homeowner responsible for throwing the party may now be held liable for the incident and any care, immediate or long-term, that the child may need. This is where umbrella liability steps in.
If your home insurance policy only covers $100,000 and the parents of the paralyzed child sue for $500,000, an umbrella liability policy will step in to cover the remaining $400,000.
A Dog Walk Turns into a Fight
It’s hard to imagine our pets doing any wrong, but accidents unfortunately happen, and all dogs have their limits. Say you walk your dog in the nearby park. Your dog loves people, but isn’t too fond of other dogs, so you keep him on a tight leash. But then he spots a dog and he wiggles out of his collar and takes off after the dog. Unfortunately, the other dog’s owner gets in between the two to break up the fight and ends up severely injured. That dog owner may sue for the injuries, both to themselves and to their pet. Unfortunately, your pet can’t pay for the damage he’s caused, meaning the cost will fall on you.
No matter what the circumstances, a personal umbrella liability policy can step in to cover the extra costs that any accident may throw your way.