It can cost a lot of money to repair damage to property or cover medical expenses when a single accident makes a large impact. Auto accidents, for example, can easily clear $100,000 in medical expenses for a single person, especially if long-term physical rehabilitation is involved. Using the Colorado minimums of 25/50/15, this means that insurance will only cover up to $50,000 for medical expenses in total. This leaves any amount over that (not counting vehicle damage) will be left to the driver. An umbrella policy from Avanti Insurance Services of Colorado could be what keeps you from bankruptcy in this type of scenario.
What is Umbrella Coverage?
Umbrella Insurance is a liability-based coverage, nothing more. This means that it covers you in the case of damage done to others when you are responsible for the incident. It covers expenses after the main applicable insurance (such as homeowners, renters, or auto) has been exhausted. It is an additional, stand-alone policy; it is not an increase to the numbers of the base policy.
Reusing the previous auto accident, should the driver that you hit be driving a $75,000 vehicle and incurred injuries totaling $500,000 (an elderly driver needing long-term care can easily clear this), you would be liable for the medical bills and vehicle damages that are not covered by the insurance (a lawsuit may add pain and suffering damages and legal fees). Umbrella coverage would be the insurance protection that covers what exceeds the maximums of auto insurance.
Should I Get an Umbrella Policy?
Insurance can be a very personal matter that should be considered on a case-by-case basis. Base policies with large enough coverage may be enough for your needs. Small factors may make umbrella coverage a better idea. Please contact our professionals at Avanti Insurance Services of Colorado so that we can help you to determine what is best for you.