18 September, 2018
Why You Need a Personal Umbrella Policy in ConnecticutBy
What You Should Know About a Personal Umbrella Policy
Are you in need of more financial protection? Connecticut personal umbrella insurance is a safeguard that protects you from incurring unexpected expenses as a result of a disaster or incident. While you may think that your auto and home insurance policies already have this covered, an umbrella policy works to extend your lines of protection.
Personal Umbrella Insurance Coverage
Umbrella insurance is designed to provide more liability protection in the event that you exhaust your current policy’s limits. For example, consider if you are involved in a car accident that causes $500,000 in damages, and you are the responsible party. Your auto insurance policy covers you up to its limit, say $250,000, but after that, you’re on the hook for the remaining expenses. That means you’re out a quarter of a million dollars and your personal assets are at risk.
In essence, umbrella coverage kicks in when you have reached the limits on your current policies, meaning that your finances and assets are even more protected.
Who Needs Coverage?
It is easy to believe that no such incident will happen to you. However, accidents happen and they can be extremely expensive. Umbrella insurance coverage is valuable for most insurance customers, particularly those with the following circumstances:
- A job that requires extensive driving, increasing the risk of an auto accident.
- Dangerous items in the home, such as a swimming pool or trampoline.
- Pets, particularly dogs that may be categorized as aggressive.
- Individuals with a high net worth.
- Any adult who has assets to protect and a decent income that can be assessed in a lawsuit.
Additionally, households with young or inexperienced drivers should consider umbrella coverage. This is a situation that many CT homeowners are in, and a situation that often requires additional protection. Car collisions can get very expensive very quickly. In addition to medical costs, vehicle damages, and property damage, the legal defense fees can take a strain on any homeowner’s wallet. Depending on factors such as how many drivers are in the household and their driving history, you can secure $1 million of additional coverage for as little as $200. The umbrella liability extends beyond the auto liability and provides coverage for your assets and income.
Obtaining an umbrella policy can be more cost effective than raising the limits on each of your auto and home insurance policies. What makes this policy unique is that it covers the gaps, wherever they may come up. Although you can’t plan for an accident, you can be adequately prepared with insurance.
For help finding the right personal insurance in Connecticut, and the surrounding cities, contact the independent insurance professionals at North American Underwriters. Serving New Britain, Bristol, Farmington, Plainville, and all of Connecticut; we will work with you to ensure you have the right amount of protection for your specific situation, all at the right price.