Why an Umbrella is needed

I was reviewing a publication in Missouri Association of Insurance Agents with real life examples.  Scenario #1, An insured was driving on a two lane highway when they struck a pedestrian causing serious head trauma.  The insured was not intoxicated, was not speeding and not using cell phone.  Fortunately, the driver had an Umbrella policy.  The auto company paid out $500,000 liability limit and the umbrella company paid out it's $2,000,000.

Scenario #2, An insured was driving a vehicle when it was rear-ended at a high rate of speed by an intoxicated uninsured driver.  The insured was airlifted to hospital due to spinal injuries and other complications.  Not only did the innocent insured driver have an Umbrella policy, the umbrella policy INCLUDED Un/Underinsured Motorist Protection.  So once the insured exhausted the Uninsured Motorist coverage under the personal auto policy they were able to obtain additional coverage from the Umbrella's Underinsured Motorist Coverage of $1,000,000.  Umbrella policies do NOT include Un/Underinsured Motorist coverage so check with your agent about adding this to your Umbrella policy or call Flanigan Insurance @ 314-727-6000.