Personal Umbrella Insurance
Personal Umbrella Insurance Information

Personal Liability Umbrella Insurance - Because Liability Lawsuits are on the Rise!
Just watch TV in the state of Colorado for 2 hours, it's almost guaranteed you will see at least 4 commercials featuring a personal injury attorney. They tout how wonderful they are by getting lots of money for their injured clients from stingy insurance carriers. What they don't tell you is that they also sue individuals if the individual is 'at fault' in the accident and injures their client. If the 'at-fault' party does not have enough insurance coverage to pay for the injured party's medical bills, pain and suffering, loss of companionship and lost wages, the personal injury attorney can go after the personal assets of the 'at fault' party. These commercials are a contributing factor to the increase in the amount of lawsuits brought against individuals in Colorado. Some states disallow these types of commercials.
Personal Liability Umbrella Insurance - Gives Additional Liability Protection
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, owned rental properties and/or recreational vehicles such as a boat, jet ski or snowmobile insurance policies.
Example: A standard home or landlord policy carries $300,00 in liability coverage. The home 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 a Bodily Injury (BI) limit of insurance of $250K/$500K (per person/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 medical bills 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 at-fault driver would be responsible to pay as required by Colorado law.
Example: A boat owner takes his neighbors out for a ride and day of fun on the water, but he hits a submerged rock and one of the neighbors is ejected out of the boat and is killed by hitting his head on the rock. His family wants compensation for his lost wages and loss of companionship. The boat owners boat policy would pay to the limit of the liability amount listed on the policy. If that weren't enough , then the boat owners Liability Umbrella policy would pay the additional costs to the family of the deceased passenger.
Important 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 on the west side of Denver in Golden CO. Our licensed agents are trained to find the right coverage for each individual client.
If you live in Denver, Golden, Lakewood, Arvada, Wheat Ridge, Morrison, Evergreen, Littleton or anywhere in Colorado, we are happy to assist explain this important policy further.
Give us a call today to find out more!
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