Get an Umbrella So You Don’t Get Soaked

We have auto insurance to cover medical costs and liability if we were to be at fault in an auto accident. And we have home insurance to cover the home and personal property in case of damage. There’s also liability coverage included with home and renters insurance. But what happens if you unfortunately cause a large auto accident? What if the medical bills are more than your auto insurance will cover? And what if those involved in the accident sue you, for more than the liability coverages on your home insurance?

This is where the umbrella insurance policy comes in. For less than $200 a year, you can have an additional $1,000,000 of coverage. If you have $500,000 auto coverage, then you would have up to $1,500,000. Depending on how much assets you have, that might be enough. It’s inexpensive because your home or auto coverages would need to be used up first.

If you are in a situation where the judgments are more than your coverage, it is up to you to cover the difference. In Colorado, these are the assets exposed in the event of a judgement: Real Property, Auto, Liquid Assets, Future Wages, and Personal Property. As the percentage of judgement awarded over $1,000,000 continue to increase, it would be wise to call your insurance agent today and inquire about an umbrella policy.

Umbrella policies used to be thought of for only wealthy clients. But that is no longer the case. The expenses of medical care after an accident are continually going up. If you had the Colorado state minimum auto liability coverage of $25,000 per person, would that really cover any major medical bills? Of course not! If you are at fault for an accident, and someone’s expenses are more than your coverage, you are responsible for the difference. Are any of us in a position to access even $20,000 to cover expenses? And what if the judgments against you from court total over 6 figures? Who is going to pay that bill. You might think since you don’t make much money, you wouldn’t be sued for very much. But in Colorado, up to 25% of earnings can be garnished to pay for amounts due. Are you able to give up 25% of your salary, and maybe for many years to come? Protect yourself, protect your family. Get an umbrella policy for the coverage you need.

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