Connecticut is a state with much to offer visitors and residents alike. From boating to one-of-a-kind attractions like the Glass House, Yale University and even an impressive wine trail, Connecticut is a favorite destination. It is important, however, to make sure you have umbrella insurance to protect yourself from unforeseen liability claims while enjoying life. If you’re looking for extra liability insurance for yourself and your family, let a local insurance agent help you with quotes before a lawsuit comes your way.
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U.S. Litigation Facts - It Can Happen to You
It should be no surprise that we live in a litigious society. Here are some facts regarding lawsuit damage awards:
- Civil lawsuits cost $233 billion per year.
- The average cost to each U.S. citizen for civil lawsuits is $809.
- The average compensation for an injury lawsuit is $60,000.
- Punitive damage lawsuits award an average of $50,000.
- Motor vehicle collisions make up 20% of lawsuits.
Unfortunately, even a minor slip and fall injury could end up costing you large amounts of money. And costs from an auto accident can add up quickly. Lawsuits, even small ones, can end up bankrupting a family or business.
What Is an Umbrella Policy?
An umbrella policy acts as extra insurance coverage for all of your other primary insurance policies. Typically, umbrella insurance provides extra homeowners, auto and boat/watercraft coverage under one policy. An umbrella policy will list these coverages as "underlying policies." For example, if you have an auto insurance policy with a $200,000 limit and you're involved in an accident or lawsuit in CT with a price tag of $500,000, you will end up paying the extra $300,000 yourself. If, however, you have a $1 million umbrella policy, your umbrella policy will cover the $300,000 overage. The same applies to your homeowners insurance, watercraft insurance or any other primary policy.
How Much Umbrella Insurance Do You Need in Connecticut?
In order to obtain a sufficient amount of coverage, you'll need to consider the following:
- How much in assets do you have to lose?
- How exposed to risk is your lifestyle?
- How much does your current insurance cover?
Insurers usually sell umbrella insurance in $1 million increments. Typically, a $1 million policy is satisfactory for most lifestyles. However, if you have extremely high income, many assets or a lifestyle that exposes you to high-risk situations, you may want to get quotes on a larger policy for better protection. Additionally, if you only carry liability coverage on primary policies, an umbrella policy may very well offer you the extra protection you need.
What Does an Umbrella Policy Cover?
Since umbrella insurance acts as extra liability coverage, it covers damage caused to others. It does not cover damage to your own home, vehicles or boats. Additionally, it does not cover incidents that your primary insurance policy excludes.
Every carrier offers different coverages and exclusions when it comes to umbrella policies, so be sure to get a few different quotes and be sure to ask about specific coverages and exclusions that may affect your purchasing decision.
How Much Does an Umbrella Policy Cost?
There is no set monetary cost for an umbrella policy. On average, quotes for an umbrella policy can range from $200 per year to more than $1,000 per year for larger policy limits like a $10 million dollar policy.
In order to get an accurate picture of how much umbrella insurance will cost, you will need to determine the value of your assets, including liquid assets, investments, retirement funds, properties and annual income. An investment adviser, personal banker or attorney may be able to help you compute this figure.
You will also need to determine if you are a "high risk" individual. If you have a high net worth or engage in dangerous sports or hobbies, you are at a higher risk for lawsuits. You should have enough umbrella insurance to cover your net worth.
Here are some sample ranges for coverage - remember, your quotes may look very different:
- $383 for $1 million in coverage for a household with one home, two cars and two drivers.
- $474 for $2 million in coverage for the same household.
- $608 for $5 million in coverage for the same household.
- $999 for $10 million in coverage for the same household.
- $1,578 for $10 million in coverage if the household also has two more homes, two more cars, a boat under 26 feet and a driver who is under 25.
Your cost may be higher or lower depending on your personal situation. You should get a few different quotes to make sure you are getting the most coverage for your money.
How Do You Get Umbrella Insurance in Connecticut?
Whether you're looking for additional coverage, just looking for more information or have questions regarding existing policies, Trusted Choice® agents are always available to help assure that you have sufficient protection.
Contact your local agent for more information on umbrella insurance costs and coverage options.