As a car owner in Arvada, CO, your auto insurance likely has two kinds of liability coverage: bodily injury liability coverage and property damage liability coverage. While bodily injury liability coverage seems straightforward, understanding property damage liability insurance is more challenging. Here’s a breakdown of property damage liability coverage?
What Is Property Damage Liability Insurance?
Property damage liability insurance provides coverage to pay for repairs and replacement of other people’s property, including cars, if you hit them with your vehicle. For example, if you hit someone’s fence, house, or car with your vehicle, this coverage will cover the cost of repairing or replacing the property. Property damage liability insurance is a must-have in 48 states in the USA.
How Will This Coverage Help You?
- Property liability coverage will pay for the repairs to another vehicle if you rear-end it while in traffic.
- Additionally, it will replace your friend’s mailbox if you crash into it with your car while pulling into their property.
- Moreover, it will pay for the damage you cause to a storefront if you set your vehicle into drive instead of reverse.
How Much Property Damage Liability Do You Need?
You can’t be sued after property damage for settlement beyond your net worth. Therefore, Alliance Insurance Services recommends getting property damage coverage equal to your net worth. This will mean you will be protected from going bankrupt because of a settlement resulting from property damage liability.
What About Umbrella Insurance?
If it’s not feasible for you to get property damage liability equal to your net worth, you should go for umbrella insurance. Umbrella insurance will cover property damage beyond your auto insurance policy limit. If your auto insurance only pays for property damage amounting to $100,000, your umbrella insurance will pay for additional liability.
Do you need auto or umbrella coverage in Arvada, CO? Contact Alliance Insurance Services today.
Whether you rent or own a home, getting some insurance is prudent. Many residents of Arvada, CO get torn between purchasing home insurance and renters insurance. Here’s what you should know.
What Is Home Insurance vs. Renters Insurance?
The homeowner purchases home insurance to protect their property and the personal belongings in their home. In contrast, renters insurance is bought by a tenant to protect their personal belongings in the house where they are tenants.
What’s the Primary Difference Between Home Insurance vs. Renters Insurance?
For you to purchase home insurance, you must own a home. On the other hand, you must be renting or leasing a house to buy renters insurance. Home insurance protects our home structure and the entire property with your personal belongings, while renters insurance only protects your personal belongings and the structures in the home. At Alliance Insurance Services, we recommend that you get either of the two policies depending on your living situation.
Personal Liability Coverage Home Insurance vs. Renters Insurance?
Both homeowner’s and renters’ insurance offer the same kind of liability coverage. For instance, if someone slips, falls, and hurts themselves in your house and sues you, home and renters insurance will cover the liability. This includes liability for medical bills, mental and physical stress, and lost wages. Additionally, both policies will cover the legal fees you incur per the legal proceedings. Remember that home and renters insurance will only cover liability relative to the policy limit. Therefore, if your policy limit is $250,000, home and renter insurance will only cover liability up to $250,000.
What if I’m Living With Roommates?
Whether you are a homeowner or a renter, if you are living with roommates, they should get their own renters insurance. This is because your homeowner’s or renters’ insurance doesn’t cover any property in your home apart from your own.
Contact Alliance Insurance Services for more home and renters insurance info in Arvada, CO.