Here is an insurance claim story based on a true incident:
A terrible automobile accident happens causing severe injuries to the person that was hit. Thankfully there was no loss of limbs or loss of life.
The Insurance Carrier is contacted and a claim is immediately opened.
In this case, there are two insurance policies in place. One is the “primary” policy with a maximum liability limit of $250,000. The other is an Umbrella Liability Policy, which provided a limit of $10,000,000 over the “primary” policy limit.
Due to the severity of the injuries the “primary” policy limit of $250,000 was exhausted.
This is where the Umbrella Liability Policy comes into action. Because the “primary” policy liability limits were exhausted a claim was opened with the Umbrella Carrier. The amount paid by the Umbrella Liability Policy was $8,000,000.
As we have learned from this incident, one bad accident can impact your financial well-being, quickly. The importance of an Umbrella Liability Policy cannot be emphasized enough.
We urge you to contact your insurance agent to discuss the options that are available in the marketplace. Equally as important is a review of your current insurance policies in order to evaluate your personal exposure and to be sure the proper coverages are in place.