While debating the title of this article, I toyed with a variation: “For homeowner and renter, umbrella insurance makes ‘pennies’ too! You see, even though you may be paying what you think is enough on your share of premiums policy, purchasing umbrella coverage will actually save you a lot, in case you are involved in a lawsuit.
Read the account below and you are sure to understand.
Spotty was a friendly little dog. As the Jones family dog, he had certain recognized rights, one of which was the freedom to sprawl comfortably on top of the driveway.
One bright, sunny summer afternoon, Spotty was doing what she 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 Jones house. As Mr. Smith was about to take a surprising turn, he fell off. The fall caused more than his share of embarrassment for the ‘pro’. Mr. Smith actually suffered physical injuries – a broken leg!
The injury was serious enough to warrant surgery, doctors said.
Mr. Smith’s medical costs cost him about $35,000. But there was more. Mr. Smith’s lost wages as a result of time off work due to the injury accumulated to $1,800.
By now you are probably wondering what the story has to do with our hero, Spotty.
Maybe you 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 who made the decision believed the version of the witnesses who validated Mr. Jones through their 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 disturbed him.
And if he had been judged in evil? Mr. Jones knew that his homeowners insurance would not cover much of the suspected damage due to the policy limits. Was there a way to purchase coverage that would do this?
After speaking with her agent, she understood that there were countless scenarios other than pet damage that could get her in trouble through a lawsuit. He decided to buy a blanket 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!