What Does Umbrella Insurance Cover?

Umbrella coverage is an additional liability insurance plan that’s designed to go beyond the limits of various standard insurance policies like home, automobile, or watercraft insurance. It provides extra security to anyone who is at risk of being sued for damaging another person’s property or injuring others in an accident. Umbrella coverage also protects against vandalism, libel, invasion of privacy, and slander.

Simply put, this coverage will supplement your basic liability policies because it has a much higher limit. So, once your original plan is exhausted, the umbrella insurance coverage will kick in. This added policy is useful if you own valuable assets or a lot of assets and you are at risk of being sued. Now, Longmont, CO residents can rely on 1st American Insurance Agency to get umbrella insurance.

How it works

Your umbrella coverage may come into play whenever you’re found accountable for damages and you have to pay for the losses or when you are prosecuted and you have to cater for your legal fees. The umbrella policy will only pay once the standard liability coverage limits are exhausted or if an entitlement isn’t included in the underlying liability coverage. Your insurer can pay the settlement up to your coverage limits. However, if the settlement amounts still exceed your umbrella coverage limits, you’ll be forced to pay the remaining amount out of your pocket.

Why is umbrella coverage vital?

Your house, car, retirement plan, investment accounts, and your normal savings and checking accounts are considered assets. If you are sued, all these assets will be at risk if you don’t have adequate liability insurance to protect you. Fortunately, an umbrella policy will ensure your assets are not exposed. This way, you will be protected regardless of the situation at hand.

Contact us at 1st American Insurance Agency for more information on umbrella insurance in Longmont, CO.

 

When do I need Recreational Insurance?

With the mention of a Recreational vehicle (RV), what comes to mind is fun and travel. Although this is so, an RV is a large and expensive investment that should be taken care of in every way possible. The 1st American Insurance Agency in Longmont, CO knows how valuable RV’s are, and that’s why we have different recreational insurance policies to suit your needs. Below are instances when you will need recreational insurance.

When Your RV is a motorhome

The law requires all motor homes to have liability insurance whenever they are on the road. You can decide whether or not you want full coverage for you RV depending on its value and the possibility of a loss. People who live in their RVs full-time may want to ensure that their vehicles have additional cover.

When your RV is financed

Financed RVs require full insurance coverage. This is because the financer would not risk losing money in case the RV is lost or involved in an accident. In case you want to avoid taking insurance for your RV, the lender may decide to take it on your behalf, but you will pay for the cost. Therefore, you do not have a choice in the matter considering the premiums will be higher if the policy is taken by the lender, and in most cases, they won’t cover liability.

When your RV is a rental

When you rent an RV, it is your responsibility to take care of it. It is advisable to purchase an insurance coverage for it while it is in your possession. Your auto insurance may cover a rental RV in some cases but you need to confirm this with your auto insurance carrier. If it does not, there are short-time policies that you can purchase for the period you intend to rent the RV.

Whether or not you are required by law to have insurance for your recreational vehicle, it is important to have one to protect your investment. The 1st American Insurance Agency offers this and other types of insurance in Longmont, CO. Visit our website today for more information about recreational insurance.