Please read below from our trusted insurance partner Steve Duris at Frontier Insurance about the importance of personal umbrella liability policies, renting cars and making sure you have the right amount of dwelling coverage.
Umbrella Insurance and Liability Limits
You have insurance for two reasons….
1. to restore people you have injured and property you have damaged
2. more importantly – to protect your assets
The wrongful death suit amount here in Colorado is over $340,000. Meaning, if you are found responsible/negligent for the death of someone (say as result of a car accident) you could have to pay the surviving family members $340K for pain and suffering and loss of companionship. THEN they could come after you for economic damages due to loss of earnings, etc.
Generally, carriers require auto liability limits of $250K bodily injury per person, $500K bodily injury for everyone in the accident and $100K of property damage. Adding a $1M umbrella can range between $150 – $300 annually depending on the number of drivers and cars. This is less than the cost of a billable hour for an attorney to help protect you against a real or frivolous lawsuits.
Keep in mind the “Umbrella” will overarch and provide additional coverage over the liability limits of your home, auto, motorcycle and other personal policies. If you don’t already have an umbrella, please contact our agency for a quote.
Does My Auto Insurance Cover Me When I Rent a Car in the United States?
Depends – if your personal auto insurance policy has collision, comprehensive and liability coverage this will extend to your rental car (in the US only) and you can decline their optional insurance. Keep in mind any claim will go against your policy.
Additionally, you may have physical damage coverage to the rental car depending on the credit card you use. Some credit cards provide primary physical damage coverage. Call your credit card company to confirm. Any personal effects damaged or stolen from the rental car would be covered by your renters, condo or homeowner’s policy – subject to deductible.
Do I Have the Right Amount of Replacement/Dwelling Coverage?
Part of our review process with clients is to make sure you are properly insured (not over or under insured.) For your home we have software that pulls information from the assessor that combines with construction costs specific to your neighborhood (understanding Colorado is different than say California or New York.)
If you have made any upgrades/improvements to your home since we last visited your policy, please call our agency so we can run a current estimate to know if we need to make any adjustments. When we have the right insurance amount in place next we need to make sure the policy provides full replacement cost coverage (vs depreciated/actual cash value) for wind/hail damage to roofs.
Also you want to make sure the policy provides a flat $1,000 deductible vs a higher separate deductible for wind or hail claims ranging from $2,500 to 2% of dwelling coverage amount. For example, a home insured for $500,000 of coverage would have a 2% or $10,000 deductible for wind/hail claims for many carriers.