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WHY WOULD I NEED AN “UMBRELLA POLICY”? I am often asked insurance questions in the course of protecting clients here is one example: via e-mail. Dear Customer, Here is a quote for your boat. A personal umbrella might also be a good idea just in case of an accident, the umbrella would extend to your home and auto as well. Steve, I am not sure I get it. Forgive me for not knowing the difference… why would I need an “umbrella” policy on the boat if I can get $113 dollar insurance coverage on it? Dear Customer, Example #1: Let's say your wife is distracted while driving the Escalade because the kids are yelling on the way to soccer practice. She turns around (no longer looking at the road) to tell them to behave, this causes her not to see the traffic light ahead turn yellow then red. While running a red light she sideswipes a Honda Civic killing 3 teenagers who were crossing the intersection legally. Without an umbrella policy the insurance company will pony up $300,000 in legal defense and settlement to the teen's parents, the limit of your auto policy; you will be on the hook for all additional settlement money required. With an umbrella when the auto policy is exhausted the umbrella kicks in giving you an additional $1,000,000 in coverage to help pay any expenses related to the claim. Example #2: While burning bees out of the old stump on your property using gasoline. You pour more gasoline on the stump because the fire looks like it went out. You get a big surprise when as you are pouring the gas on the stump the second time as it flairs up. Instinctively you throw the gas can in hopes of not getting burned. The gas can fly's 20 feet and hits your neighbor's 8 year old son; soaking his clothes in burning gas. This kid just 10 seconds earlier thought you were a genius. The neighbor kid spends the rest of his life getting
skin grafts as he grows and is disfigured by the burns to his neck face and chest. The umbrella will pay in addition to your home owner's liability policy to help the child try to live a normal life. Example #3: While out boating on Saratoga Lake your kids decide they want to go tubing with their friends and you are the driver. At first you say no because you're a little tired from baking in the sun all day. The boat has been parked for hours in that sandy bay area where everybody wades around from boat to boat socializing. The kids keep asking and asking and asking, finally you think what the heck a quick lap around the lake and they will leave you alone. Your wife climbs on your friends boat because going around in circles makes her sick. But lucky for you your buddy is willing to spot the kids and decides to ride along. Great! You get everything set to go; cruise out to the middle of the lake, a nice safe spot to flip those little swamp rats with the wake. You get the kids in the tube and hit the throttle. While making circles you lose your balance because you are dehydrated and fall overboard. Your buddy does not hear you yelling because the outboard motor is whining at 4000rpm and anyway he is laughing his butt off as the kids are flying at brake neck speed through the wake. You watch as the boat heads into the sandy bay running over waders and hurtling your buddy out of the boat as it hits the flotilla of social boaters. The State police are pulling the last of the mangled waders out of the water just as you finally make it back; swimming from the middle of the lake. Thankfully you were convinced to buy the umbrella policy by the first 2 examples and are properly insured for incidents just like this one. Now you know, Steve The Lyden Group LLC • Insurance Agency 282 Ushers Road • Clifton Park (518) 877-7018 • info@lydengroup.com