Personal Umbrella Insurance
Personal Umbrella Insurance Information
Personal Liability Umbrella Insurance - Because Liability Lawsuits are on the Rise!
Just watch TV in the Denver area for 2 hours. It's almost guaranteed you will see at least 4 commercials from a personal injury attorney. They tout how wonderful they are by getting lots of money from insurance carriers. What they don't tell you is that they also sue individuals if their insurance policy isn't enough to cover their clients injuries. These commercials have caused an increase in the amount of lawsuits brought against individuals.
A personal liability umbrella policy is an important policy to purchase, but the name is not an accurate representation of what it covers
Most people think the term ‘umbrella’ means this policy will cover all the weird or unusual types of losses that are not covered by their home or auto insurance policies. Some people think it will also cover them in their professional activities. This is not correct. In general, for most personal umbrella policies available, the policy provides additional or excess liability limits above the auto, home or business insurance policy limits.
Example: A standard home policy carries $300,00 in liability coverage. The homeowner has a pool; a guest slips while running around the edge and severely injures themselves. The home policy will pay for injuries up to the limit of $300,000 . The umbrella policy provides an additional limit of insurance to pay for the injured person’s medical bills and lost wages.
Example: A driver carries $250,000 (per person) / $500,000 (per accident) in bodily injury liability coverage. This driver is deemed ‘at fault’ for an auto accident in which he injures one person who has $450,000 in injury and lost wage costs. Since his auto policy limit will only pay $250,000 to any one injured party, the umbrella policy would pick up the additional $200,000 in costs the driver would be responsible to pay as required by Colorado law.
Another Benefit to Purchasing a Liability Umbrella Policy
Most policies will also pay the attorney’s fees to defend you in a court of law. If the liability case brought against you is fraudulent or without merit, the umbrella policy will still pay the attorney fees to defend you… whether you are found liable. This is a huge benefit. Attorney’s are expensive to hire, and their fees rack up quickly.
We are a personal lines and business insurance broker located in Denver CO. Our licensed agents at Denver West Insurance Brokers are experienced in finding the right coverage for each individual client.
If you live in Denver, Golden, Lakewood, Arvada, Wheat Ridge, Morrison, Evergreen or Littleton Colorado, we are happy to assist explain this important policy further. Give us a call today to find out more!