Smart consumers are increasingly supplementing their auto and homeowner’s coverage with relatively inexpensive umbrella insurance policies that provide additional coverage in the event of a major accident.

Skyrocketing accident settlements have made umbrella policies, which supplement your auto and homeowner’s insurance, more important than ever to protect your home, your savings, your retirement fund, your future earnings and other assets in the event of a major settlement in favor of the other person(s) involved in an accident.

Colorado requires motorists to have insurance covering at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $15,000 per accident for property damage.

With this minimal required automobile coverage, your insurance company will pay a maximum of $15,000 for property damage resulting from an accident that’s your fault. With many cars selling for much more than that, totaling your vehicle or someone else’s already can put you in the hole – possibly by many thousands of dollars.

And medical bills exceeding $25,000 are not uncommon. So, the state-required minimum also leaves you at risk for medical payments.

We recommend higher coverage than the state-required minimums for our clients – at least $100,000 per person for bodily injury and at least $300,000 per accident for bodily injury and for property damage.

Most of us think of homeowner’s insurance as protection against damage to our homes. But it also covers you if someone is injured on your property. If you own a boat, your homeowner’s insurance typically covers an accident involving your boat.

With some of the million-dollar plus settlements awarded by juries, even high auto and homeowner coverage may need to be supplemented. That’s where an umbrella policy comes in.

Anywhere from $1 million to $5 million of coverage are common amounts for umbrella insurance policies, but they can be written for any amount of at least one million. These policies, which are surprisingly inexpensive, provide coverage in addition to any payments made by your auto or homeowner insurance and cover legal bills as well. If you have assets that need to be protected, an umbrella policy is a really good idea — especially for families with young drivers.

Looking for help choosing the right coverage to protect your assets? I can help. You can reach me at 303-922-1001.