While debating the title of this article, I played with a variation: “For homeowner and renter, umbrella insurance earns ‘pennies,’ too! You see, though you may be paying what you think is enough on your share of premiums.” of the policy, purchasing umbrella coverage will actually save you a lot, should you be involved in a lawsuit.
Read the account below and you are sure to understand.
Spotty was a cute little dog. As the Jones family dog, he had certain recognized rights, one of which was the freedom to lie comfortably at the top of the home’s driveway.
One bright, sunny summer afternoon, Spotty was doing what he did best. From the vantage point of the driveway, he watched next door neighbor Mr. Smith show off his talents as an experienced roller skater right in front of the Joneses’ house. As Mr. Smith was about to take a surprising turn, he fell. The fall caused more than his share of embarrassment for the ‘pro’. Mr. Smith did indeed suffer physical injuries: a broken leg!
The injury was serious enough to warrant surgery, doctors said.
Mr. Smith’s medical costs cost him around $35,000. But there was more. Mr. Smith’s lost wages as a result of time off work due to the injury totaled $1,800.
By now you’re probably wondering what the story has to do with our hero, Spotty.
Maybe you have guessed it. Mr. Smith filed a $220,000 lawsuit against the Jones family of his neighbor. He alleged that Spotty had been the cause of his misfortune and related damages.
The story has a happy ending because the jury that decided the decision believed the version of the witnesses who validated Mr. Jones through his testimony: the dog, Spotty, was in fact about eight feet away from Mr. Smith when the injury occurred.
A happy Mr. Jones returned home after the trial. However, something suddenly made him uneasy.
What if he had been judged wrong? Mr. Jones knew that his homeowners insurance would not cover much of the alleged damage due to policy limits. Was there a way to purchase coverage that would do it?
After speaking with her agent, she understood that there were countless scenarios other than pet damage that could land her in trouble through a lawsuit. He decided to purchase an umbrella policy, coverage that would protect him from $1 million to $5 million should he ever need it. Coverage that clearly made sense, as well as pennies!