Gallen InsuranceGallen InsuranceGallen Insurance

Let’s start with the basics, what is umbrella insurance? A Umbrella Policy often called a PUP or Personal Umbrella Policy provides an additional layer of protection above your home & auto insurance policy. A recent article in the Smart Money section of the Reading Eagle with Bruce Williams went as far as calling it “foolish” not to have this layer of coverage. When you consider the very reasonable cost of $100-300 per year on average, the protection provided far outweighs the cost. Here are a few real life example of an umbrella coming in handy:
Example #1: The insured lives in a home with a brick patio. She, the claimant, and another friend met at a club, had a few drinks & all returned to the insured’s home where they sat on the patio on lawn chairs and continued drinking. Around 11 pm, the insured entered the kitchen, along with one friend who came in to call a cab. When the friend went back outside, the claimant was no longer on the patio. She found the claimant unconscious on the ground on the other side of the patio wall. The claimant remembers falling, but not how it happened. The claimant sustained a spinal cord injury which rendered her an incomplete quadriplegic. She underwent surgery and was on a feeding tube for several months. She was able to return home 6 months after the incident, but continues to suffer partial paralysis of her arms & legs. She now uses an electric wheelchair to get around and requires assistance for daily living. The claimant owned her own business and was married one month before the incident. Her husband now cares for her at home. The settlement to the claimant exhausted the libaility limits on the insured’s homeowner’s insurance policy and payment was made under the personal umbrella.
Example #2: The client’s 18 year old son was driving the insured’s car on a short  trip to the store with his girlfriend, the claimant. The car left the road and struck a tree. The client’s son told the policy that a vehicle cut him off, but there were no witnesses and no evidence of any impact with another car. The claimant has no recollection of the accident. The claimant, a 19 year old college student was hospitalized for over a moneth with multiple fractures and internal injuries. She was in a wheelchair but is now able to walk with crutches and continues with physical therapy.  The insured’s personal umbrella policy limit was paid.

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