Umbrella liability claims are no different than regular liability claims, other than the underlying policy doesn’t have high enough limits so the umbrella kicks in. The most common types of claims that need to dip into an umbrella include:
Serious car accidents: Thousands of people die in car accidents each year, with thousands more having serious hospitalizations. The bill for these types of accidents can easily exceed $500,000, which you would be on the hook for unless you have an umbrella policy.
Dog bites: Most dog bite claims are adequately covered by homeowners liability limits, but if there’s a tragic death involved, you could be sued for more than that.
Trampoline accidents: Similar to dog bites, if there was a tragic accident that resulted in a death, you could be sued for more than what your homeowners insurance liability covers.
Swimming pool accidents: Serious injuries, paralysis, or death could result in you being sued in the hundreds of thousands of dollars or more, meaning you’d need an umbrella policy to cover those costs.