When it comes to protecting your finances, standard home and auto insurance policies do a lot—but they don’t cover everything. That’s where umbrella insurance comes in.
If you’re a Colorado resident wondering whether umbrella insurance is worth it, the short answer is: it depends on what you want to protect. Let’s break it down so you can decide if it makes sense for your situation.
What Is Umbrella Insurance?
Umbrella insurance is extra liability coverage that kicks in when your auto or home policy limits are exhausted. It’s designed to protect your assets (and your future income) in case you’re held responsible for something big, like:
- A major car accident with multiple injuries
- Someone getting seriously hurt on your property
- A lawsuit related to rental properties or defamation
It doesn’t cover everything, but it adds a valuable layer of financial protection when you need it most.
Why Might You Need It in Colorado?
Colorado is a beautiful state with plenty of outdoor activities, growing cities, and higher-value homes. But it’s also a state where lawsuits are common, medical costs are rising, and extreme weather can create risky situations for property owners.
You may want to consider umbrella insurance in Colorado if:
- You own a home, especially with a pool or trampoline
- You regularly host guests
- You have teenage drivers on your auto policy
- You own rental properties or a business
- You have significant savings, retirement funds, or investments you want to protect
Even if you think you’re careful, accidents happen. If you're found legally responsible and the damages exceed your policy limits, you’re personally on the hook—and that's a risk umbrella insurance helps manage.
How Much Does It Cost?
One of the best things about umbrella insurance is how affordable it is. Most policies start around $150 to $300 per year for $1 million in coverage. That’s a small price to pay for peace of mind, especially if you’re building wealth or managing multiple assets.
What It Doesn’t Cover
Umbrella insurance doesn’t cover:
- Damage to your own property
- Business liability (unless added by endorsement)
- Intentional acts or criminal behavior
- Professional services (you’ll need separate coverage)
It's meant to cover liability, not general loss. That’s why working with a knowledgeable advisor is key—we’ll help you understand the coverage and avoid gaps.
How EJC Insurance & Financial Can Help
At EJC, we look at the big picture. Our team helps clients across the country make smart, informed decisions about their financial and insurance needs. Umbrella insurance is just one part of a well-rounded plan to protect what matters most.
We’ll work with you to:
- Review your current policies
- Evaluate your risk exposure
- Find umbrella coverage that fits your needs and budget
- Coordinate with your home, auto, and business policies for complete protection
Whether you live in Colorado Springs, Lakewood, or anywhere else in the U.S., we’re here to make sure you’re not left exposed when it matters most.
FAQ’s
1. How much umbrella insurance do I need?
Most people start with $1 million in coverage. If you have significant assets or income, you may want more.
2. Is umbrella insurance required in Colorado?
No, it's optional. But for many homeowners and families, it’s a smart move to protect against large liability claims.
3. Can umbrella insurance cover rental properties?
Yes, it can extend liability protection if you own rental properties. Just be sure to disclose them when applying.
4. Does it replace my home or auto insurance?
No. Umbrella insurance only kicks in after those policies hit their coverage limits.
5. How do I know if it’s right for me?
We recommend talking to a licensed advisor, like the team at EJC team, who can look at your full financial picture and recommend what makes sense.
