You know what scares me more than a car accident?
Getting sued for invasion of privacy.
Seriously. One bad post, one overheard conversation,one angry review. And you’re done. [16†L11-L13]
I was reading this case from Georgia the other day. Guy had an umbrella policy. Thought he was safe. Then wham – $10 million judgment for invasion of privacy. [8†L2-L8]
His insurance said no. Because he waited too long to tell them.
Nearly five years. [16†L4-L6]
How invasion of privacy lawsuits happen
Here’s the thing nobody warns you about.
Your homeowners policy? It’s basically useless here. Most standard policies don’t touch libel, slander, or privacy claims. Like zero coverage. [17†L23-L25]
Ask me how I know.
A neighbor’s Ring camera catches you saying something. A Facebook rant about a local business. A misunderstanding with a coworker that spirals.
Suddenly you’re hiring lawyers.
Why umbrella insurance is different
This is where umbrella coverage actually shines.
Most personal umbrella policies specifically include “invasion of privacy” in their personal injury definition. [12†L13-L14] Look for it in your policy wording – “personal injury” not just “bodily injury.”
Big difference.
The Schaubel case from Florida is interesting. Doctor made statements to the press. Got sued for libel and invasion of privacy. His umbrella policy defined personal injury to include exactly that. [12†L11-L14]
But here’s the catch – and it’s a big one.
The intentional act trap
Most umbrella policies exclude acts you “intended” to do.
But they also cover “intentional torts” like invasion of privacy. See the contradiction? [18†L14-L16]
Courts have called this ambiguous. And when it’s ambiguous, they usually side with you. [18†L35-L40]
But don’t count on it. Seriously.
You take that video. You post that thing. You know what you’re doing. The insurer will fight. Hard. [18†L17-L20]
What you’re actually buying
An umbrella policy starts around $1 million in coverage. Costs maybe $200 to $550 a year in most states. [6†L10-L12]
That’s less than your Netflix subscription.
For that, you get: legal defense costs (huge), settlements or judgments, and coverage for stuff your home policy ignores – like privacy claims. [14†L22-L24]
Some states are cheaper. Seattle runs $450-$500 for a million. Texas $200-$550. California pushes higher – $150-$350 baseline but climbing. [6†L4-L8][22†L15-L19]
The notice thing again
You have to tell your insurer. Immediately.
Not next month. Not when the lawsuit arrives. The moment something happens that might become a claim.
That Georgia case? 58-month delay. [16†L5-L6] Insurer walked away. $10 million judgment. Policyholder stuck holding the bag.
The victim’s lawyer eventually found the policy and tried to notify. Too late. [16†L13-L16]
Don’t be that guy.
What umbrella won’t cover
Business activities. If you run an LLC from home, your personal umbrella probably doesn’t apply. [11†L27-L31]
Intentional criminal acts. Obviously.
Professional services – doctors, lawyers, accountants – need their own policies. [12†L16-L18]
Some internet-related privacy claims are getting excluded now too. Insurers are watching this space. [11†L34-L40]
Bottom line
Look. I’m not saying run out and buy the biggest policy you can find.
But if you own a home? Have a dog? Post on social media? Maybe think about it.
A million dollars of umbrella coverage costs less than dinner out once a month. Could save your house. Your savings. Your kids’ college fund.
Just read the damn policy.
And if something happens – tell your insurer right away. Not later. Now.
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