Take these claim scenarios from RLI: The insured’s 18 year old son was driving the insured’s car on a short trip with his girlfriend (the claimant). The car left the roadway and struck a tree. The son claimed that a car had cut him off, and the girlfriend had no recollection of what happened. The girlfriend who was a 19 year old college student was hospitalized for over a month with multiple fractures and internal injuries. She was in a wheelchair but was not able to walk without crutches and has a right drop foot as a result from the accident. The insured’s umbrella policy limit was paid. IMAGINE if they didn’t have the extra layer of coverage? They would most likely be stuck with large bills and nowhere to turn. Let’s look at another example… The claimant was age 2, and on the insured’s property with his grandparents who were there to take care of two horses owned by the insureds. The insureds were out of town on vacation. The claimant was kicked by one of the horses and rushed to the emergency room, and later life flighted to a larger hospital. The child was given a 5% chance of survival and went into surgery for a cracked skull (a piece of which was missing) with 30% damage to the right side of his brain. He survived and is residing in a neighboring state at a rehabilitation center. A large payment was made under the personal umbrella policy. How about this sad story… The insured hosted a party at his home. Among the guests was the claimant, a family friend who was also the insured’s financial adviser. The claimant brought his wife, infant, and a two year old to the party with him. The insured gave the claimant a jug of spring water for him to use to mix formula for the infant. The two year old also had a drink. Shortly after… the children became ill and the family left the party and took the children to the hospital. The hospital requested the water jug which was found to contain arsenic. An old label was found wrapped around the handle with “weed killer” printed on it. The insured had apparently mixed a solution of weed killer in a jug similar to the ones used for spring water and mistakenly gave it to the claimants. The infant died and the two year old child survived after being in critical condition. The personal umbrella policy limits were paid out. Scary that one simple mistake can result in such a sad story. If the insured did not have an umbrella policy they would be in some serious debt. Last story to put perspective that anything can happen in the blink of an eye that could leave you facing large bills. The claimant and insured have been longtime friends, live on the same street, and the claimant had been to the insured’s home on many occasions. The insured lives in a home with a brick patio which was constructed in the 60’s. The bricks were replaced a year before the incident. An area of the patio is boarded by an 18 inch retaining wall with a flower bed between the wall and the brick patio. The insured, the claimant and another friend had been drinking that night and returned to the insured’s home. Around 11:00 pm the insured and the friend went inside to the kitchen and the friend called a cab. When they returned to the patio outside the claimant was not on the patio. They found him on the ground unconscious on the other side of the retaining wall. The claimant remembers falling but doesn’t recall why. According to the insured, on other occasions when the claimant had been at the home there was a patio table in front of the retaining wall. The table had been removed, exposing the area of the wall. The claimant, age 56, sustained a spinal cord injury which left him an incomplete quadriplegic. He underwent surgery and was on a feeding tube for several months. He was able to return home after six months being in the hospital. He continues to suffer partial paralysis of his arms and legs. He uses an electric wheelchair to get around his house and requires assistance with daily living activities. The claimant owed his own business and was married just a month before the incident. His wife cares for him at home. The settlement to the claimant exhausted the insured’s underlying coverage amounts and a payment was made under the personal umbrella policy. These stories highlight the risks of everyday living.
It is important to be prepared for anything at any time and that is where insurance comes in. You don’t have to be wealthy to be involved in an accident... Call one of our agents today to talk about an umbrella policy that covers you. Comments are closed.
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