Umbrella Insurance FAQs: The answers to the most common questions

Umbrella insurance is an additional type of insurance that provides extra protection on top of other insurance types, such as auto or home insurance. Its mission is to fill the gaps that are left by other insurance policies. If you are thinking of getting umbrella insurance, here are the answers to the most common questions about it:

1. What does umbrella insurance typically cover?

Umbrella insurance typically protects a policyholder against several sources of possible damage. Firstly, it covers medical costs if someone is injured at your property. Secondly, it covers you if you are responsible for damage to someone else’s property. Lastly, umbrella insurance steps in if you are facing a lawsuit and covers all the legal costs.

2. Who needs umbrella insurance?

Anyone who owns a home, rents a house or apartment, or owns other valuable assets will definitely benefit from having umbrella insurance.

3. How much umbrella insurance should you get?

To answer this question, you should estimate the value of all your assets, including your home, investments, savings, and vehicles. You also need to take into account the limits of your other policies. This is a complex query, and it’s better to discuss it with an experienced insurance agent.

While umbrella insurance is not mandatory, meaning you don’t have to carry it, it’s a great source of additional protection that anyone can benefit from. If you still have questions about this insurance, feel free to contact Davidson Insurance Agency, serving clients in Evergreen, CO, and nearby areas. At Davidson Insurance Agency, we’re ready to answer all your questions and help you find the right policy. You’re welcome to visit our website or give us a call.

Three situations where umbrella insurance coverage is essential

Some consumers don’t realize just how many scenarios they could face that make it essential to have umbrella insurance. At Davidson Insurance Agency, we offer umbrella insurance to consumers throughout Evergreen, CO.

Here are three situations where umbrella insurance coverage is essential.

You’re facing a lawsuit that your primary insurance policies can’t completely cover.

Expensive lawsuits can be financially devastating. Unfortunately, primary insurance policies don’t always offer enough coverage to pay for the costs of expensive lawsuits.

With umbrella insurance, you can be sure that you won’t have to pay out of pocket or dig into your savings to pay for lawsuit expenses. 

You are a property owner who rents out properties.

Umbrella insurance is especially good to have for landlords. Landlords could face lawsuits if accidents occur on their properties. Resulting lawsuit expenses could severely compromise the profitability of a rental property.

When you purchase umbrella insurance, you can ensure you’re protected against possible lawsuits you may face as a real estate investor. Umbrella insurance is an important type of insurance coverage that you should always have if you invest in rental properties. 

You’re worried about potential financial threats that could reduce your net worth and cause you to lose valuable assets.

One of the best benefits of umbrella insurance is that it offers peace of mind. Umbrella insurance prepares consumers for the financial uncertainties of the future.

If you invest in umbrella insurance, you get an extra layer of protection. Protect your assets and net worth by finding the right umbrella insurance coverage option for your needs. 

Get umbrella insurance from us at Davidson Insurance Agency. We offer you the coverage you need in Evergreen, CO. Call us for a quote!

Why would someone in Colorado want to invest in umbrella insurance?

If you are in the Evergreen, CO area, you are likely aware that there are always some personal liability risks that are present. One of the ways that you can protect yourself against your personal liability risk is by getting insurance. An added form of personal liability coverage to consider is umbrella insurance. There are a lot of reasons why someone here will want this insurance when in this area.

Coverage for a Wide Range of Risks

A top reason why someone in Colorado will want umbrella insurance is because it can offer coverage for a wide range of risks. While you will have some liability insurance through auto and home insurance, there are additional risks that are not covered by these plans. Umbrella insurance is an ideal option as it offers broad coverage. This can help ensure that you are ultimately covered for a wide range of unexpected risks. 

Additional Insurance for Major Claims

Auto and home insurance plans provide very helpful liability coverage protection. However, there are always situations when an accident could occur that results in damages that exceed your insurance coverage. If this does occur, you need to make sure that you have coverage to mitigate this risk. Umbrella insurance will provide this additional coverage on top of your existing plans and can be quite helpful following accidents that cause significant damages. 

Consult With Us

An umbrella insurance plan is a great insurance option if you are in the Evergreen, CO area. When you are shopping for this type of coverage here, you can have all of your questions answered if you call us at the Davidson Insurance Agency. Our professional with the Davidson Insurance Agency will help you assess your various options, explain the benefits of coverage, and help you build a plan that you are happy with. 

What benefits does umbrella insurance provide for my small business?

A lot of people don’t realize how inexpensive but practical umbrella insurance can be. You can get a large amount of extra protection at a surprisingly low price when you purchase an umbrella policy for your Evergreen, CO small business. At Davidson Insurance Agency, we know how to help you find coverage that works for you.

What Is Umbrella Insurance?

An umbrella insurance policy simply extends coverage beyond your normal insurance. If you have multiple kinds of insurance for your business, as most do, your umbrella policy will protect you in all those areas. It is common to get an umbrella policy for at least an extra million dollars worth of coverage.

For instance, if someone falls on your property and their injuries exceed your regular insurance. Your policy will stop paying once you reach your maximum. Without an umbrella policy, your business might have to pay for those injuries.

What Else Does Umbrella Insurance Help With?

Umbrella insurance also adds other kinds of protection not normally available under a traditional policy. Under your regular policy, there are usually exclusions for events like false arrest, libel, and slander. Your umbrella policy may provide protection for you in these areas and others.

How Does Umbrella Insurance Work?

You will not be able to use your umbrella coverage until you reach the maximum on your regular policy. Depending on the circumstances, that could happen quickly. A large lawsuit could permanently harm your business without protection.

You can have this protection for your business at a reasonable price. Call Davidson Insurance Agency today so we can show you how umbrella insurance can protect your Evergreen, CO small business.

Tailoring Your Umbrella Insurance Coverage to Your Lifestyle

As a resident of Evergreen, CO, it’s important to ensure you have the right insurance coverage in place to protect your lifestyle and assets. While you may already have several insurance policies in place, such as auto and homeowners insurance, there may still be gaps in your coverage. That’s where umbrella insurance from Davidson Insurance Agency comes in.

What is Umbrella Insurance?

Umbrella insurance provides additional coverage beyond what is offered by your primary insurance policies. It is designed to protect your assets and provide extra liability protection in the event of a lawsuit or other unexpected event. However, not all umbrella insurance policies are created equal. It’s important to work with an experienced insurance agent who can help you tailor your coverage to your specific needs and lifestyle.

Examples of Customized Umbrella Insurance Coverage

Your umbrella insurance policy can be customized to fit your specific lifestyle and needs. For example, if you own a boat or other watercraft, you may want to consider additional liability coverage to protect against accidents or injuries that may occur while boating. If you frequently entertain guests in your home, you may want to consider additional liability coverage to protect against potential accidents or injuries that may occur on your property. We can work with you to determine the appropriate amount of coverage needed to protect your unique lifestyle and assets.

Customizing Your Umbrella Insurance Policy

At Davidson Insurance Agency, we understand that every client has unique insurance needs. That’s why we take a personalized approach to insurance coverage, working closely with clients to assess their risks and tailor their policies accordingly. We can help you customize your umbrella insurance policy by determining the appropriate coverage limits, deductibles, and additional coverage options needed to provide adequate protection for your assets and lifestyle.

Contact us today to learn more about our Evergreen, CO umbrella insurance options and to receive a quote.

Three things you shouldn’t do when you buy umbrella insurance

Buying umbrella insurance is one of the best things you can do to achieve complete financial protection. Without umbrella insurance, your assets may be at risk. We can assist you with your umbrella insurance needs in Evergreen, CO at Davidson Insurance Agency. 

The following are three things you shouldn’t do when you buy umbrella insurance

Failing to purchase an adequate amount of umbrella insurance

The amount of coverage you purchase is one of the biggest decisions you make when you buy umbrella insurance. Umbrella insurance is typically sold in increments of $1 million.

Buy enough umbrella insurance coverage to cover the complete value of your net worth for total financial protection. 

Not fully understanding what umbrella insurance covers

Some consumers buy umbrella insurance without really understanding what expenses they’re getting covered. One of the most important things to realize is that umbrella insurance will not cover consumers directly for loss or damages to their own possessions. Instead, umbrella insurance offers coverage for liability expenses. 

Neglecting to update your umbrella insurance policy over time

It’s a good idea to reevaluate your umbrella insurance policy once in a while. You might want to make some changes to your policy including the amount of coverage your policy includes.

If your net worth goes up, it’s best to add on more umbrella insurance coverage. Updating your umbrella insurance once in a while helps to avoid leaving your valuable assets unprotected. 

Give Us A Call

If you’re ready to buy umbrella insurance, get in touch with Davidson Insurance Agency. We provide umbrella insurance policies to consumers in Evergreen, CO and surrounding areas. Call us to get a quote on a policy that will protect your finances. 

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.