Who Needs Umbrella Insurance?

When you purchase insurance to cover liability at your Evergreen, CO home or business from Davidson Insurance Agency, you might want more coverage than our underwriters allow on a single policy. We don’t leave you in the lurch because we also offer umbrella insurance, a type of secondary insurance that you can add to any primary policy.

The insurance industry defines a primary policy as one that includes liability coverage, so you can add umbrella insurance to a homeowner’s, renter’s, auto, or business/commercial policy. You can not purchase only an umbrella policy.

Who Buys Umbrella Insurance?

Both individuals and groups need umbrella insurance. It offers added coverage in case the individual or organization gets sued. Certain individuals purchase it more often than others.

These individuals include members of the following groups:

  • Residing in a home with a swimming pool or trampoline,
  • Owning ATVs, Seadoos, other small land or watercraft,
  • Owning an exotic vehicle or supercar,
  • Within a decade of retirement or already retired,
  • Volunteering or working in a field that requires one-on-one consultation, such as coaching Little League, Pop Warner football, etc.
  • Serving on a company or non-profit’s board of directors.

That shortlist of rather common items increases the chance of you getting sued and/or a lawsuit wiping out your financial security without insurance. What do we mean?

Example of Umbrella Coverage Need

Let’s say, for example, that you’re 55 years old and own a home with a swimming pool. You regularly hold fundraisers there for your child’s Little League group. At the fundraising party, a child falls into the unattended pool and sustains lasting brain damage. He will require at-home nursing care for the remainder of his life.

Without umbrella insurance, the only coverage you have comes from your home policy, which typically includes liability coverage in the amount of 10 to 20 percent of the value of your home. That’s probably about $50,000 or so and that won’t pay for medical costs, court costs, legal settlement, and attorney fees. The rest comes out of your pocket and may mean emptying your retirement funds. Then you only have 10 to 15 years before retirement to rebuild what you had probably paid into for 33 years.

Get The Right Coverage Today

Umbrella insurance provides significant coverage that kicks in as soon as your main policy pays out its maximum. An umbrella policy costs only a few dollars each month for a half-million- or million-dollar policy. Contact Davidson Insurance Agency serving Evergreen, CO for information about umbrella insurance and to purchase your policy.

Things that home insurance won’t cover

You buy home insurance to provide peace of mind and, in some cases, because you are required to by your mortgage holder. You may or may not be aware that no home policy covers everything that could possibly go wrong. There are always exclusions. Being aware of them and making the necessary adjustments is vital. At Davidson Insurance Agency in Evergreen, CO, we are independent insurance agents who work for you to find the personalized home insurance policy you desire.

Home Insurance Exclusions

Owner neglect

Your insurance company will hold no unrealistic expectations that you will maintain your home. It is your responsibility as a homeowner. If you neglect the care of your home, your home insurance will not cover the resulting damage. This includes things like termites, mold, rodent damage, and wear and tear. 

Flooding

Floods are one of the most damaging natural disasters and happen in many locations across the United States. Traditional home insurance does not cover flooding. You need to purchase a separate policy through the National Food Insurance Program in order to get the protection you may need. 

Earth Movement

Earth movement is not covered by home insurance either. This includes not only earthquakes but sinkholes and landslides. These are all types of earth movements. In order to be covered, you will need to purchase an endorsement providing this coverage. 

Sewer or sump pump backup

Having your sewer backup into your home is disgusting and not something anyone wants to have to deal with. It is even worse to discover that your home insurance isn’t going to pay for the cleanup and any damage that results. This coverage can be obtained through an addition to your policy at an additional charge. 

Get The Right Coverage For Your Home Today

Contact Davidson Insurance Agency in Evergreen, CO for any home insurance needs you may have.