What exactly does Colorado homeowners liability insurance cover? In a state with 4 million residents, homeowners insurance can be a great factor. Liability insurance is just one of the main parts in a standard Colorado home insurance policy, however it can be the difference between you going to court and having to pay court and lawyers fees out of your own pocket and your insurance company taking care of everything. In the following article you will learn the insights of the Colorado homeowners liability insurance and the things that it does and does not cover.
What Exactly Does Colorado Homeowners Liability Insurance Cover?
This is a question that many people ask when it comes time to purchasing a standard homeowners insurance policy in the state of Colorado. Although liability coverage is a relatively new one when it comes to the home insurance industry, it cannot be looked over. Liability coverage simply covers you from being sued by a third party if they get injured in your premises. Keep in mind that you can get as much liability coverage as want, but that can make a huge difference in the price that you are paying per month.
How Liability insurance works is completely separate you from having to pay any fees at all to the person injured. Instead of that person actually dealing with the owner of the house and the main person insured in the policy, they will have to set up a claim directly through the home insurance agency. The company will then deal with them directly and none of the parties will have to contact you about fees or anything like that.
Types Of Coverage In Colorado Homeowners Liability Insurance
Before you buy the product from any insurance company in the Colorado state market, it is important to know the types of coverage that they will offer you in the event of a liability claim. Most insurance companies provide a basic limit liability of approximately $300,000 in the event of property damages or personal injury. A good thing about this coverage is that you can increase it if you so choose, however you will be paying more per month for a higher amount of liability coverage.
Most insurance companies also offer a medical payments coverage (check your company to see if you have it) that ranges in between $1,000 and $5,000. This medical coverage for example will cover things such as neighbor getting his hand burnt in a barbeque at your place, a kid falling, or a trampoline in your property and resulting in an injury, and even a dog bite from your pet to a third party.
Keep in mind that all of these amounts vary from company to company and from state to state. If you want the exact information about the coverage that you are getting you should talk to your agent or do some research on your policy of choice.
Three Types Of Cases Where Colorado Homeowners Liability Insurance Will Protect You
1. Injury or death of a third party in your property.
2. Injury or death to others off your property.
3. Damage to the property of others.
Cases In Which Your Colorado Homeowners Liability Insurance Will Not Protect You
Unfortunately, it is important to highlight that liability insurance coverage in your Colorado homeowners insurance policy is not an “all inclusive” coverage. This means that there are certain things that are not covered and that can result in you having to take money off your own pocket in order to cover the charges. Keep in mind that some of these may vary from company to company and the list may be different according to difference cases.
1. You will not be covered if your liability arises from an intentional act on your part.
2. You wont be covered if your liability arises through the use of an aircraft.
3. You will not be covered if the liability comes up through the use or ownership or an automobile.
4. You won’t be covered if the liability results from a trick, stunt, racing, or any similar activity.
5. You wont be covered if the liability results from damage to property that you own, that is owned by anyone else covered in your policy (Example: you are fixing your roof and a brick falls on your son’s bike and damages it).
6. You will not be covered if your liability results from slow and gradual discharge of pollutants into the air, land or water.
Umbrella Coverage And Colorado Homeowners Liability Insurance
For the people that want to add coverage to their liability insurance, many Colorado homeowners insurance companies offer what they call an “umbrella” coverage. This coverage can only be used after the remaining money on the liability part of your home insurance policy ceases to exist.
Because these types of coverage are not a regular part of a homeowners insurance policy, people usually buy them separate. Keep in mind that if you want a umbrella coverage, you should be prepared to pay a little bit more in monthly premiums and that some companies won’t sell you that kind of coverage until you insure both your home and car with them.
It is also important to understand that the cost of an umbrella policy will vary depending on how much money you want the additional coverage to be. Many companies let you choose from a variety of amounts that should work for you, while some others simply have limited amounts the person can choose from. It has been known that a person can buy an umbrella coverage of approximately $1,000,000 and their yearly premiums will only be affected up to an estimated $300.