Category: 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. 

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.