Your home and auto policies are designed to protect you from liability losses up to a certain dollar limit, but what if that limit is exhausted? Consider this scenario: you caused a major auto accident that resulted in $750,000 worth of bodily injury and property damage. Your auto insurance only covers $500,000. Who is responsible for paying the remaining $250,000? You are - unless you have an umbrella policy.

An umbrella policy is designed to protect you above and beyond your home and auto policies. With umbrella liability insurance, you are safe, your family is safe, and so is your lifestyle.

It can be hard to envision a large loss scenario, so here are a few examples that highlight the importance of umbrella insurance:

#1 A mailman was startled by a barking dog while delivering the mail through a door slot. The mailman slipped and fell down the stairs, suffering a fractured ankle among other injuries. The mailman sued and the case was settled for $800,000.

#2 While approaching a stop light, a distracted driver rear ended a stopped vehicle at a high rate of speed. The driver of the stopped vehicle suffered severe neck and back injuries. The case was settled for $1.1 million.

#3 A young babysitter left an infant unattended for a brief period of time. When she returned, she noticed the infant had fallen over and hit her head. After a medical examination, it was determined that the infant had suffered brain damage. The family of the injured infant filed suit against the baby sitter and her family. The courts awarded the parents and injured infant a multimillion dollar settlement.

#4 A family hosted a pool party for some friends to celebrate the end of summer. The hosting family did not provide alcohol; however, several guests brought alcohol with them, and it was available at the party. After leaving the party, a minor was severely injured in an auto accident, and the authorities attributed the injury to alcohol consumption at the party. It was determined that the host family was responsible for the furnished alcohol, and was therefore responsible for all damages. The hosting family’s personal liability and umbrella coverage covered the entire loss.

#5 A teenage driver slide on ice and hit a passing vehicle, which caused minor injuries to the passing driver. A medical examination later that day showed that the injured driver suffered a wrist injury. The claimant was a computer programmer who depended on his hands, wrist, and fingers to work. The claim was settled for $250,000.         

You've worked hard to grow and expand your assets. It's important to protect them. An umbrella is a simple and cost effective way to preserve those assets and your quality of life.