71 Raymond Rd, Suite 215
West Hartford, CT 06107
What is an Umbrella Policy?
These policies are inexpensive, so call one of our Licensed Agents and let them provide you with the ultimate piece of mind.
That being said, just as an umbrella you may use when it’s raining protects you from getting wet, a personal Umbrella policy is going to protect you from an unforeseen accident that you may be liable for which will exceed your current Liability limits on your other policies.
As a general rule, you should purchase Umbrella insurance if the total value of your assets, including ordinary checking and savings accounts, retirement funds, college savings, investment accounts, and home equity is greater than the limits of your Home and Auto liability limits. You want to have enough Liability insurance to exceed your assets, so you will not lose them in a lawsuit.
The real question you could ask yourself is, am I at risk of being sued? The answer is yes. Everyone is so an Umbrella insurance policy makes sense for everyone. It is a small price to pay for the extra peace of mind.
An Example of How Umbrella Insurance Works:
You have homeowner's insurance with a personal liability limit of $500,000. You throw a party, and one of your guests slips and falls on your pool deck. Your guest ends up with a concussion, astronomical medical bills, and decides to sue you. The jury sides with your party guest and awards a judgment of $1 million. This judgment is $500,000 higher than your Homeowner's insurance liability limit.
Without a personal liability Umbrella, you will have to pay that $500,000 out of pocket. The money will have to come out of your retirement account, your main source of savings. The loss is devastating and means you’ll have to work 10 additional years, find a higher paying job, or drastically cut back your expenses to replenish your savings and get back on track to be able to retire.
But if you have $1 million in Umbrella policy, you will be covered for the portion of the judgment that your Homeowner's insurance does not cover and your retirement savings will remain intact. The Umbrella policy will also cover any attorney fees and other expenses related to the lawsuit that were not covered by your Homeowner's policy. That coverage is in addition to the $1 million.
for all your insurance needs!