Umbrella insurance is one of the most poorly understood types of insurance in Colorado. Despite the fact that it’s offered by McDonald Insurance Group of Colorado and many other reputable providers in the state, there are still a lot of people who don’t know about its uses and don’t understand how it can help them. This type of insurance can extend your insurance policy limits when they are reached. It acts as a safeguard for damages and fees that go well beyond your standard limits. This can also be used to protect you from liability issues and lawsuits.
When Would I Need Umbrella Insurance?
For example, one day you get in a car crash, but you happen to escape with minor injuries. Unfortunately, the occupants of the other vehicle are badly hurt, and their car is totaled. The court finds you responsible for the accident and orders you to pay for the damages, medical bills, and lost wages for the badly injured occupants of the other vehicle. You are left with about a million dollars damages to pay for. Your insurance gives you a quarter of a million pay-out, so what will you do about the remaining $750,000?
Umbrella Insurance is the Rescue
Just like an umbrella covers every part of your body in the rain, umbrella insurance is a single policy that provides coverage for most aspects of your financial life. This coverage is designed to protect you from lawsuits; it’s a form of liability insurance. This coverage takes care of the extra costs when you go over your policy’s liability limits. It covers legal damages, legal fees, bodily injuries, and physical damage resulting from an accident. This coverage would take care of the $750,000 we talked about earlier.
If you are looking for umbrella insurance policy, call McDonald Insurance Group of Colorado. Our agents will help you choose a policy and answer any questions you may have. Reach out to us for more information.