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Tag Archives: buying an umbrella policy

When Do You Need an Umbrella Policy?

liability insurance

I recently got renewal documents in the mail for our umbrella policy. What is an umbrella policy and why on earth do we have one? Excellent questions! I can’t say  whether or not you need one, but here’s why we decided an umbrella policy made sense for us. What is an Umbrella Policy? No, it isn’t a policy to cover your umbrellas (HA), but extra coverage in addition to liability limits you already have on your vehicle or home insurance policies. In Colorado, the highest liability limits you can have on those are $300,000 per occurrence. If we were at fault in a car accident, anyone could sue us. Maybe the medical costs from an accident might be over  $300,000, or maybe we live in a small town where people know we own quite a few things and might have a little money. The umbrella policy also covers us if someone is hurt on our home or rental property. A few years ago, I also had the misfortune of having a former employee try to file a suit against me for a number of reasons. Her case had no merit and didn’t get anywhere, but if she had sued me ...

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