What is Umbrella Insurance in CT and Why You Might Need it

by | Nov 18, 2013 | Insurance

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If you are concerned about losses you might experience if you are involved in a major lawsuit, then you might want to consider Umbrella Insurance in CT. Now, before you call your insurance agent and start pricing out this type of coverage, you’ll first probably want to know what this coverage is, how it can help you and how much this insurance will cost you. Here are a few things to keep in mind.

If you don’t know what Umbrella Insurance in CT is, it’s an insurance policy that covers any shortfalls in the liability of your existing insurance policy. For example, if you were to be involved in an auto accident and that accident resulted in a lawsuit brought against you by someone you injured in the accident. The possible liability you may have financially after the suit is over may exceed the limits you have on your current auto insurance policy.

In these instances, umbrella insurance will pick up the slack. If you are found responsible for lost wages of a person, medical bills, property damages and other punitive damages and that number exceeds your auto insurance liability limits, your umbrella will cover those shortfalls. This will help you make the necessary restitution as you would likely not be able to afford the cover the difference out of pocket.

Now when you are talking about umbrella insurance and cost, you will typically find that for every $1 million of coverage, you can expect to pay about $100 to $200 monthly. It will likely be about another $100 per month for each $1 million increase in umbrella coverage.

Lastly, you may be wondering where you can get this sort of coverage. While there are some insurers that focus on selling this type of insurance exclusively, most insurance agents of specific insurers or insurance brokers will offer a wide variety of umbrella policies.

In today’s litigious society, it’s not surprising that umbrella insurance is almost required. With the potential of getting caught up in a major lawsuit following an accident of some sort, umbrella coverage offers you a certain amount of peace of mind. Should you find yourself financially liable after an accident and those liabilities exceed your insurance limits, it’s nice to know you have a back up insurance plan to cover this shortfall in your primary insurance policy. For more information visit website.

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