Integrated Family Community Services 3370 South Irving Street, Englewood, CO 80110-1816 Ph: 303-789-0501

When You Have A Lot To Lose: You Need Excess Liability Coverage

The more you have, the more important it is to have proper protection. This means that as your earning power and assets increase, you will be facing higher risks; therefore, you need to be protected. But what could happen if an unfortunate accident occurs and that accident is deemed to be your fault? Do you have liability insurance from your current policies to cover the costs that will be levied on you? What if the expenses exceed the liability insurance of your current policies? Where will you get the funds to pay for these expenses?

To have additional protection on top of your current homeowners and car insurance policies, you need to purchase excess liability coverage, commonly known as an umbrella policy. This is additional protection in case a claim exceeds your current policies’ insurance limits. The umbrella policy can offer coverage that may range from one to five million dollars.

License: Royalty Free or iStock source

Excess Liability: A Closer Look

Umbrella insurance offers broad protection against various financial dangers. The excess liability coverage of this type of policy increases an individual’s personal liability limits; therefore adding protection to his current car or homeowner’s insurance policy. In addition, if a certain event is not covered by the individual’s current insurance policy such as libel, and if it is not specifically included in the excess liability policy, he will be covered.

If you have a family and a number of assets you wish to protect, you definitely need the added protection offered by the umbrella insurance. It works hand-in-hand with your current insurance policy and applies after you go beyond the liability protection offered by those policies. This type of insurance will also pay for your legal fees in case of a lawsuit. Such fees can be extremely costly.

Click here to learn more about umbrella insurance policy.

This type of insurance provides:

  • Protection for covered claims by a third party for injury or property damages which resulted from the event that was deemed your fault.
  • Liability coverage for accidents that might happen on or off of your property
  • Additional level of protection on top of your auto insurance against car accident liabilities
  • Coverage for legal defense fees, such as lawyer fees, and other court costs
  • Worldwide coverage. You can use this policy wherever you are when the liability charge is levied against you.

Is It Expensive?

Umbrella insurance

policies are very affordable considering the broad protection that they offer. Most insurance carriers find it unlikely that they might actually need to pay out on this insurance which is one of the reasons that the cost is relatively low. If you are thinking of purchasing this policy, the cost will be determined by several factors:

  • The amount of coverage you want
  • Your risk profile
  • The insurance carrier

To help you save more on the fees, you can purchase your umbrella insurance from the same insurance carrier as your current policy. Most carriers offer money-saving discounts if you purchase more than one insurance policy from them. In addition, there are also some companies that offer an endorsement to existing homeowner insurance that increases your liability limits.

How much umbrella policy coverage is enough? Determining how much coverage you need is a personal decision; however, your insurance agent can help you in find out the coverage amount you need. It usually depends on the value of the assets you want to protect. Here are some things you need to take into consideration:

  • The future value of your assets
  • Are you involved in activities that put you at risk? Do you drive vehicles? Do you have a small business?

Kris Bennette is a blogger for finance websites. She has written various topics about the different types of insurance and how to save money on them.

Tim Esterdahl

Tim Esterdahl is the editor of IFCS blog. He is a married father of three and enjoys golf in his spare time.
Tim Esterdahl

Find Us on Social Media

Thank you to O'Toole's Garden Centers in Littleton, Lakewood, and Westminster for your support. They have found unique ways to make a difference for over 10 years. We appreciate being the beneficiary of the beer sampling garden this past weekend. How fun and how creative. The Trivia display says it all - fun, unique, creative! @O'Toole's Garden Centers ... See MoreSee Less

View on Facebook

7 hours ago

Integrated Family Community Services

Great to partner with so many wonderful organizations this weekend to touch the community and bring hope to those struggling to get the resources they need. Christian Brother Automotive helps our clients overcome their challenging transportation obstacles. Christian Brothers Automotive Highlands Ranch Christian Brothers Automotive Arapahoe Road ... See MoreSee Less

View on Facebook

Timeline Photos ... See MoreSee Less

View on Facebook

IFCS On Twitter

We're excited to be part of the inaugural Denver Day of Service on June 7th hosted by the @Broncos and @UnitedWayDenver!

#BeAChampion and sign up to volunteer at the community service project we are hosting! 👉

Please be advised this week April 22-26 IFCS is unable to accept clothing donations as we are preparing for our Mother’s Day program. Clothing donations will be accepted again Monday, April 29 at 8:00am. As always, thank you for your support! #donations #supportIFCS

Looking for a job? We are joining forces with Arapahoe Libraries to offer career services workshops. Our first event is May 7th 4pm-6pm at IFCS' Englewood location. Join us and make your cover letter and resume stand out from the rest!

Load More...

Key Sponsors

Our Affliations




Sign Up for our eNewsletter

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletter
For Email Marketing you can trust

USDA Non-Discrimination Policy

IFCS follows the USDA non-discrimination policy. Learn more by clicking here to read the statement. (PDF)