Colorado Umbrella Insurance

Colorado Umbrella Insurance

No one expects that it can happen to them. They have home insurance, made sure to have their car, and other vehicles covered. But sometimes the liability is not enough, and it is for times like these that many have purchased umbrella insurance.

Like its name implies, umbrella insurance covers liability or damages that are over and above standard homeowners, auto, boat or other insurance policies. Whether you live in Denver or Delaware, everyone should look into having umbrella coverage.

How it works

Umbrella insurance covers issues of liability and negligence that homeowner’s or auto insurance may not be able to cover fully or not at all. For example, if you were unfortunate enough to be at fault in a collision and someone is injured but you don’t have medical coverage that covers all of their claims, umbrella insurance will kick in to cover that additional amount. Depending on the insurer, umbrella insurance policies can provide an extra $1-$5 million, on top of your original policy. Unlike excess insurance, it covers liabilities that are not covered under the original policy, giving an extra level of security and peace of mind.
As one of Denver’s best independent insurance agencies, we know how important it is to have adequate protection and insurance coverage. Umbrella insurance is not just for the wealthy; with the rising costs associated with going to court, umbrella insurance can provide protection for those that need it most. It can be used to help cover legal costs, including hiring a defense lawyer and damages, if they are awarded. It can also cover lost wages and pay for rehabilitative treatment as well.

Why it is needed

Almost every state, Colorado included, has financial responsibility laws in place. No matter where it happens, if it was in Colorado Springs, Denver, or Boulder, if you are at-fault in a car accident or someone is injured on your property due to negligence, you can be held liable for all the costs associated with it. These can include legal costs (for both you and the other person), medical costs, costs for property damage, and if it goes to court, it is up to the judge’s discretion as to how much in damages may be awarded. It does not take much to add up quickly.

If that at-fault accident resulted in $600,000 in damages (both vehicles were written off, there was extensive property damage, and medical costs), and $300,000 in legal fees, that’s $900,000. And if your auto insurance policy only covered $500,000, you would be left responsible for $400,000. In most cases, the liability coverage from a homeowner’s or auto policy is not enough to cover all the costs, and the person responsible is left to pay the rest. If they don’t have the means to pay it, there are few things that can happen. Their wages can be garnished, or liens put on the property or even their possessions and property can be seized and sold off to pay off the debt.

In our increasingly litigious society, we believe that having umbrella insurance is one of the best ways that our clients have of protecting what they have built. For a small annual fee, it can cover a wide variety of liability issues, covering you when you need it most. We have served the Denver area for years. Let us help you get the protection you need at the price you deserve.

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