Personal Umbrella Insurance in Colorado
Umbrella insurance in Colorado adds a layer of liability protection above your auto and home or renters policies, for the serious claim that exceeds their limits. Chelsea Insurance Services, a family-owned agency in Firestone, helps families review their limits and compare umbrella options.
Quick facts
- An umbrella typically pays covered liability claims that exceed your auto and home or renters limits.
- Carriers usually require minimum liability limits on your underlying policies.
- Umbrellas are commonly sold in $1 million increments.
- Personal umbrellas generally exclude business activities and damage to your own property.
- Coverage depends on the policy and carrier. We’ll review options with you.
What a personal umbrella typically covers
A personal umbrella provides extra liability protection layered over personal auto and home policies. It’s designed for the rare, serious claim that is bigger than your underlying liability limits.
- Bodily injury and property damage liability above the limits of your auto, home, renters or other underlying policies, up to the umbrella’s limit.
- Some claims your underlying policies don’t cover. Depending on the carrier, an umbrella may extend to certain claims, such as some personal injury claims like libel or slander, subject to a self-insured retention you pay first.
- Legal defense costs, which many umbrellas pay in addition to the limit. How defense costs are handled varies by policy.
What it usually doesn’t cover
- Your own property. An umbrella is liability coverage. It doesn’t pay to repair your home, car or belongings.
- Business activities and professional services, which personal umbrellas generally exclude. Coverage varies.
- Intentional acts and damage you cause on purpose.
- Contractual liability you take on in an agreement, in many policies.
- Anything the policy specifically excludes, which can include certain vehicles, watercraft, aircraft or animals, depending on the carrier.
How an umbrella works with your auto and home policies
Think of the umbrella as a layer that sits on top. Your auto and home or renters policies respond first, up to their liability limits. If a covered claim goes beyond those limits, the umbrella may pay the difference up to its own limit.
Because of that structure, carriers usually require you to carry certain minimum liability limits on the underlying auto and home or renters policies before they’ll write an umbrella. The carrier sets required underlying limits and we’ll check yours. If an underlying policy has a gap, fixing it is usually the first step.
Who should consider an umbrella in Colorado
Most of us don’t expect to be sued. An umbrella is for the day that assumption turns out to be wrong. Households often consider one when they have:
- A teen or newly licensed driver in the house
- A pool, hot tub or trampoline
- A dog
- A rental property or a home they rent out part-time
- Friends and family over often, or events at home
- A volunteer board role (check the umbrella’s exclusions)
- Meaningful savings, retirement accounts or home equity to protect
Living on the Front Range, many families drive a lot of miles on busy highways, ski and hike in the mountains and host guests year-round. Those are ordinary parts of life that come with ordinary liability exposure.
Colorado context: why liability limits matter
Colorado raised the general cap on noneconomic damages in civil cases. Under HB24-1472, the cap increased to $1.5 million for civil actions filed on or after January 1, 2025, with inflation adjustments scheduled to begin January 1, 2028.
Noneconomic damages are things like pain and suffering, as opposed to medical bills and lost wages. A higher cap means some injury claims can be worth more than they used to be, which is one reason many families review their liability limits and consider an umbrella.
This is general information, not legal advice. Coverage depends on your policy’s terms.
How much umbrella coverage do you need?
Personal umbrellas are commonly sold in $1 million increments.
A practical way to think about it is to weigh three things: what you have (savings, investments, home equity), what you earn and could earn in the future, and the exposures in your household, such as drivers, a dog, a pool or a rental. The goal is a limit that fits your situation, not the biggest number available.
We don’t quote prices on this page because they depend on your household, your underlying policies and the carrier. Tell us about your situation and we’ll compare options.
How to get an umbrella quote
- Tell us what you need. Use the quote form or call 720-669-3647.
- We compare options. As an independent agency, we can look at more than one insurance company for you.
- You choose. We walk you through the options in plain English, and you decide.
What to have ready:
- Your current auto and home or renters declarations pages (they show your liability limits)
- A list of drivers in the household
- Details on any rental properties, pools, trampolines or dogs
- Renewal dates for your current policies
Sources
This is general information, not legal advice. Coverage depends on your policy’s terms.
Personal umbrella insurance FAQs
What does personal umbrella insurance cover?
A personal umbrella typically adds liability protection above the liability limits on your auto and home or renters policies. If a covered claim, such as a serious car accident or an injury at your home, exceeds those underlying limits, the umbrella may pay the rest up to its own limit. Some umbrellas also cover certain claims your underlying policies don’t, subject to a self-insured retention and the policy’s terms.
How much umbrella insurance do I need?
There’s no single right number. Many people start by adding up what they could lose in a lawsuit, including savings, home equity and future income, and then consider their exposures, such as teen drivers, a pool, a dog or a rental property. Umbrellas are commonly sold in $1 million increments. We can walk through your situation and the options available.
Do my auto and home policies have to be with the same company as my umbrella?
Not always. Some carriers require the underlying auto and home or renters policies to be written with them, and others will write an umbrella over policies from another company. Either way, the umbrella carrier usually sets minimum liability limits for the underlying policies. We’ll look at your current declarations pages and tell you what each option requires.
Does an umbrella policy cover dog bites?
It may. If your home or renters policy covers a dog-bite claim and the claim is larger than that policy’s liability limit, the umbrella may pay the excess, subject to its terms. Some umbrellas limit or exclude animal liability or follow the underlying policy’s exclusions. If your dog has a bite history, ask us about dog liability insurance as well.
Will an umbrella cover my rental property?
Often it can, if the rental is listed on the umbrella and the underlying landlord or dwelling policy carries the liability limits the carrier requires. Carriers usually limit how many rental units a personal umbrella can include, and larger rental portfolios may need commercial coverage. Tell us about your rentals and we’ll check what fits.
Does a personal umbrella cover my business?
Usually not. Personal umbrellas generally exclude business activities, professional services and many business-related claims. A business typically needs its own liability coverage and, if needed, a commercial excess or umbrella policy. See our business insurance page or ask us about both.
Get an umbrella quote from a family-owned agency
Tell us a little about what you need and we’ll follow up to review options with you.