The Facts About a Personal Umbrella Policy

You probably have auto insurance, home insurance, and other necessary coverages in Lafayette, Colorado. You probably think that this is enough, but it may not always be. In fact, you may need to think about purchasing a personal umbrella policy.

How Does It Work?

Your regular policy may be unable to pay for all the damages and claims that may occur following an incident. For example, after an auto accident, you may need additional coverage to cover your liability if you were deemed at fault for the accident. Another example would be if someone files a claim against you after getting injured on your property. In some cases, your regular policy limits may not cover all of the associated costs. However, if you have an umbrella policy, it can cover the amount that exceeds the limits of your insurance policy up to the amount of coverage that you purchased.

Who Needs It?

If you have large personal assets, such as cash, home equity, etc., then an umbrella policy may be necessary. In some cases, even if you don’t have a lot right now, you could in the future. You may get in an accident, sue a trucking company and receive a significant judgment. You will then be at risk of becoming a victim of fraud. Ultimately, if you need more liability protection, then an umbrella policy may be just what you need.

How Much Is Needed?

This will vary from situation to situation. It will depend on the value of your current assets, estimated value of future assets, number of properties that you own, what type of recreational activities that you partake in and a number of other factors.

Your best bet is to give our home insurance agency a call to get quotes and to obtain more information regarding the umbrella policy and what it can do for you. We proudly serve the 80026 community and are happy to help you determine how much coverage you need, if any, and tailor an umbrella policy to meet your specific needs.