4 reasons you need umbrella insurance

An independent agent explains:
This post is part of a series of insurance blogs on Safeco.com showcasing the expertise of local independent agents and aimed at helping you understand important insurance coverage and issues.

Living in a busy world, our lives constantly intersect with the people around us, and some interactions can have surprising consequences. It is increasingly important to make careful insurance choices to protect yourself from the unexpected. Because, even if you carry excellent coverage with high limits, situations can still arise that leave you liable for costly damages exceeding what any single policy can cover.

This is where an umbrella insurance prevents loss, by sitting over other policies, such as home insurance, auto, boat, etc., providing additional liability coverage if the underlying policy maxes out during a claim. Here are a few cases when an umbrella policy is essential:

1. Passenger Injuries
   Driving around with friends, it can be easy to get distracted and go a little too fast. If an accident occurs and passengers are seriously injured, medical expenses can add up quickly – potentially totaling more than what an auto policy would cover. Without an umbrella policy, any liability expenses beyond the auto policy limits may be the driver's responsibility.
2. Social Media Mishap
   With so much communication happening on social media, conversations with friends are now in the public eye. Picture a teenager getting angry at a teacher – no stretch of the imagination there – and venting online. Depending on what's said, the teacher may decide to sue the student's family for personal injury after the blow to his/her reputation. Cases like these have paid more than half a million dollars, far beyond the standard liability limit on a home policy. An umbrella policy may step in to cover the rest of the claim.
3. Dog Bites the Neighbor
   Responsible dog owners take the time to train and socialize their pets. However, even breeds that aren't typically associated with aggressive behavior can suddenly act out, despite our best efforts. If a pet badly injures a neighbor, the cost can go into the millions between medical bills and future disability. Most home insurance policies top off at less than $500,000 in liability coverage, leaving a huge gap.
4. Faulty Furnace
   Being a landlord is tricky business. Even with the most responsible management, rental properties can be a minefield of possible claims. If a furnace starts malfunctioning, a tenant may sue for brain damage caused by carbon monoxide poisoning. While all landlords should maintain their property and make repairs as needed, having a safety net in case of a major liability claim is equally important.

While most people don't stop to think about everything that can go wrong, insurance professionals very often see the worst case scenarios, such as the examples above. I know they sound like horror stories, but, trust me, they can be a lot worse if you don't have enough coverage in place. So, work with your local independent agent to select the insurance you want to help protect yourself and your family in these and plenty of other scenarios.

About Erin Eudy and Riskguard Insurance Solutions, Inc.
Erin Eudy is an insurance agent with Riskguard Insurance Solutions, Inc., an independent agency that delivers custom-tailored insurance and risk management solutions in California and neighboring states. She works closely with clients to understand their needs and provide coverage that fits the whole picture, making sure they're protected at home, on the road and beyond. Choice is essential to delivering the well-rounded coverage her clients want. As an independent agency, Riskguard Insurance Solutions has access to an array of highly acclaimed insurance companies. The family corporation has more than 85 years of accumulated experience in the insurance industry.