An umbrella insurance policy in Lakewood, CO can be a useful tool in avoiding financial ruin if you are sued. However, there is a lot of confusion surrounding these policies and that confusion leads to a lot of people not purchasing them, even though there are a lot of benefits. These commonly believed myths aren’t true and there are reasons why.
Myth 1: Umbrella insurance is your first line of coverage.
Your umbrella insurance is actually your second line of coverage and won’t kick in until your other primary insurance policies are exhausted. You aren’t even able to purchase umbrella insurance unless you already have a primary policy.
Myth 2: Umbrella insurance is just for rich people.
With the increase in the number of lawsuits filed, everyone can benefit from umbrella insurance. In fact, the wealthy may have more resources to ride out a lawsuit, whereas someone who is struggling wouldn’t, making umbrella insurance even more important for the average person.
Myth 3: Umbrella policies are too expensive.
It could depend on your risk and other circumstances, such as how likely you are to get sued, but many times umbrella insurance policies will be cheaper to get that if you want to raise the limits on your primary policies, such as home and auto.
Myth 4: It’s too hard to get an umbrella policy.
If you are getting policies from different insurers, there could be some confusion and it can be harder to get an umbrella policy. However, if you choose one insurance company, such as Colling Insurance Services Inc. then it’s easier to get a policy and you could save money by bundling policies.
Myth 5: There are too many exclusions.
Every policy has its own exclusions, but an umbrella policy can actually provide some additional coverage that you can’t get with a normal homeowners policy, such as protection against libel and slander.
Contact Colling Insurance Services Inc. serving Lakewood, CO, to get a quote on umbrella insurance.