We have auto insurance to cover medical costs and liability if we were at fault in a car accident. And we have home insurance to cover the home and personal property in case of damage. Liability coverage is also included with homeowners and renters insurance. But what happens if you unfortunately cause a major car accident? What if medical bills are more than your car insurance will cover? What if those involved in the accident sue you, for more than the liability coverage of your home insurance?

This is where the general insurance policy comes in. For less than $ 200 a year, you can have an additional $ 1,000,000 of coverage. If you have a car coverage of $ 500,000, then you would have up to $ 1,500,000. Depending on how many assets you have, that might be enough. It’s inexpensive because your home or car coverage should be used first.

If you find yourself in a situation where the failures are more than your coverage, it is up to you to cover the difference. In Colorado, these are the assets exposed in the event of a lawsuit: real property, automobiles, liquid assets, future wages, and personal property. As the percentage of judgment awarded over $ 1,000,000 continues to rise, it would be wise to call your insurance agent today and ask about a blanket policy.

Umbrella policies used to be intended only for wealthy clients. But that is no longer the case. Medical care expenses after an accident increase continuously. If you had the Colorado state minimum liability coverage of $ 25,000 per person, would that really cover important medical bills? Of course not! If you are at fault for an accident and someone’s expenses are more than your coverage, you are responsible for the difference. Are any of us in a position to access even $ 20,000 to cover expenses? What if the judgments against you from the court add up to more than 6 figures? Who is going to pay that bill. You might think that since you don’t make a lot of money, you wouldn’t be sued for a lot of money. But in Colorado, up to 25% of earnings can be garnished to pay off amounts owed. Can you give up 25% of your salary and maybe for many more years? Protect yourself, protect your family. Get a blanket policy for the coverage you need.