Umbrella Insurance Colorado Springs: Basic insurance is there to protect you if you are responsible for something big. Like an umbrella, it’s there to fill in any coverage limits of your other insurance policies.
For example, if you have a serious car accident and need to cover replacement and medical costs, an umbrella insurance policy can help you with these extra costs. Rather than just having your regular auto insurance policy, Colorado umbrella insurance gives you the extra coverage you may need.
WHAT IS AN UMBRELLA INSURANCE?
The primary insurance will step in to cover you when the limits of your other policies are reached. For example, let’s say your homeowner’s policy covers $200,000 and someone gets injured on your property. If the claims filed against you total $400,000, your umbrella policy would cover the difference.
Some of the situations that general insurance would cover are:
- An injury to your property on the homeowners policy
- A car accident in which the damage exceeds your liability insurance
- Legal costs in cases of liability of cars and homeowners
- Lawsuits filed against you for defamation, defamation, and defamation
- An injury suffered by the tenant or damage to the property you rent to them
Those are just some of the cases where an umbrella insurance policy steps in to cover you. Basic insurance covers you for various types of claims that are normally not covered by other policies. Contact your broker to discuss the details of what is available to you with umbrella insurance coverage.
Who Needs Umbrella Insurance Colorado Springs?
In general, anyone who is in a position to be sued or has an accident should consider umbrella insurance. But some people are at higher risk and should consider it more seriously.
Situations that can put you at higher risk include:
- own a house
- Risky possessions, such as trampolines and swimming pools
- have a gun
- Working in the public eye
- Sharing opinions or criticism with a public audience
- Having a teenage or inexperienced driver in your household
Umbrella insurance Colorado springs is versatile, acting as a sort of safety net when other policies don’t cover you. That makes it a smart investment for anyone looking to protect their assets in unforeseen circumstances.
How does umbrella insurance work?
Umbrella insurance comes into effect when there is a liability claim covered by your auto or homeowners insurance policy that exceeds the coverage limits you purchased on those policies.
Before you can buy umbrella insurance colorado springs, many insurance companies require you to have a certain amount of underlying personal liability coverage in your auto and homeowners policies. In addition, you may also need to insure both your home and your vehicles through the same insurance company from which you purchase the general policy.
The big question is often, “How much coverage should I have?” The answer usually depends on your ability. Calculating the value of your home, stocks, mutual funds, and retirement accounts is the first step in determining the amount of coverage you should buy under an umbrella insurance policy.
Any claim amount that exceeds your standard liability policy is your responsibility to cover. To cover the cost of a large insurance claim against you, you may be forced to use money from your current assets, such as savings accounts, 401(k), or even your home. Your future earnings may also be at risk. While too great a loss or catastrophic event is unlikely, insurance companies offer general policies for customers who want to protect their assets and feel more secure. The good news is that umbrella insurance is very affordable.
Real-Life Examples Of Umbrella Insurance Colorado Springs Coverage At Work
An umbrella insurance policy is suitable for people of all levels of personal wealth. Here are four situations where the general policy was vital:
A driver loses control on an icy road surface and crashes into another car. The other driver is seriously injured for $900,000. The guilty driver has auto insurance that covers $250,000 for injuries to a person. If you have an umbrella with a $1,000,000 limit, you will pay the remaining $650,000. Without an umbrella, the motorist would be personally liable for that huge amount.
A homeowner has insurance that covers his liability for bodily harm to others up to $300,000 per accident. A neighbor’s son drowns in his swimming pool. The neighbor’s estate demands $1,500,000. Your home insurance pays $300,000; but if you don’t have an umbrella, you are responsible for the remaining $1,200,000.
A man has boat insurance that covers his liability for injuries to others up to $300,000. He lends his boat to a friend for the weekend. Your friend is reckless and collides with another boat. The survivors and the deceased’s estate are suing the boat’s driver and owner. The court finds the owner liable for $1,000,000 of the verdict. His boat policy pays $300,000, but he’s responsible for $700,000 because he didn’t have an umbrella policy.
A woman repeats aloud a rumor she heard about her neighbor. The neighbor sues her for defamation and wins $500,000. The woman’s homeowners insurance policy doesn’t cover defamation, but her $1,000,000 umbrella does. After you pay a $250 deductible, your umbrella will pay the rest.
UMBRELLA INSURANCE COLORADO SPRINGS COSTS
Most people are surprised to find how affordable comprehensive insurance is. The cost of an umbrella insurance policy is usually several hundred dollars per year. Considering the protection they offer, the price is well worth it.
For exact pricing details, you should discuss the desired level of coverage with your insurance broker. Your broker can help you determine what makes the most sense for you when it comes to general insurance in Colorado Springs.
Umbrella Insurance in Colorado Springs, Colorado
Umbrella Insurance can assist with the claim and payment processes by covering costs when all other insurance policies have been exhausted. This makes handling claims and payments a lot easier. O’Donnell Agency Inc can help you find the right umbrella policy to meet your needs.
COLORADO: WHAT IS YOUR HEALTH WORTH?
An overarching policy provides additional layers of liability protection. If the liability limits of your underlying home, car or other insurance policy are exhausted, your umbrella insurance policy will take over and provide additional protection. The cost is minimal compared to the comfort of knowing you are covered.
COLORADO SPRINGS: DO YOU HAVE SUFFICIENT LIABILITY INSURANCE?
Imagine what would happen if your dog bit a neighbor’s child, or if an accident happened at your rental property. What if a fire in your apartment spreads to other units? If any of these things happened to you, likely, your current limits of liability will not be sufficient to protect your assets or future income.
UMBRELLA INSURANCE COLORADO SPRINGS STARTS WHEN THE OTHERS END
Once the liability limits for your home, car or other policies are exhausted, your umbrella policy takes over and provides a second layer of protection of at least $1,000,000. Higher limits may also be available. Talk to Western Insurance Solutions to determine the right coverage for your needs.
An umbrella insurance policy also pays for some claims that are not covered by your home, car, or other underlying insurance. The policy covers not only you but also your spouse and all family members living in your home, anywhere in the world. Legal defense fees are also paid.
The coverage that suits you is unique. Contact us today to find out how you can protect yourself, your family, and your future with the comprehensive insurance plan that’s right for you.