Umbrella Insurance in Colorado

How Does Umbrella Insurance Work in Colorado?

Umbrella insurance in Colorado Spring CO makes up for the gaps in liability coverage that your auto or homeowners insurance may not be able to cover. For example, if you are involved in an auto accident with injuries and your auto insurance liability limit isn’t enough to cover the claims, your umbrella insurance kicks in to cover any additional amount. Umbrella insurance can provide an additional $1-5 million of coverage on top of the original policy, depending on how much you choose with an agent at WestCo Insurance LLC. It can also cover some other liabilities that aren’t included under the original policy to give you extra peace of mind and security. Umbrella insurance can provide protection for bodily injury or property damage for an accident that exceeds auto or boat liability limits. It can also cover bodily injury due to an accident on your property. It will help cover lawsuits and legal costs relating to libel, slander, and defamation of character.

Why Is Umbrella Insurance Needed?

Colorado, just like every other state, has financial responsibility laws in place. This means that if you get into an accident and you are at fault, or someone is injured on your property because of negligence, you will be held liable for the costs associated with this. This can include legal fees, medical costs, property damage costs, and even more claims if the case goes to court. It doesn’t take a lot for these expenses to add up quickly. An at-fault accident can result in $600,000 in damages, and then you still have $300,000 in legal fees. This is $900,000 you are responsible for and, if your auto insurance only covers $500,000, for example, you are left with the remaining amount.

In many cases, the liability insurance on your home or auto isn’t enough to cover expensive accidents. If you can’t pay, your wages can be garnished, and property can be seized to pay off the debt. In a litigious society, it’s essential to protect yourself.

Contact WestCo Insurance LLC, serving Colorado Spring CO, to get a free quote on umbrella insurance.