You’ll hear us talk frequently about the most popular insurance policies like home, auto, and life. But perhaps the most important yet least known about policy out there is an umbrella policy. Not sure what an umbrella CT insurance policy is? Well, keep on reading!
Now let’s take a step back and think- you have insurance for your car and insurance for your home, and they each cover you, your family, and obviously, that which the policy is for- the vehicle or home. But, as with pretty much all things, there’s limits. But where those limits exist (any math people out there will chuckle at the last part with limits), that’s where an umbrella policy comes in. Just thing of it this way- your standard CT insurance policy is like having a raincoat during a rain shower… it keeps you dry on the inside, but needless to say you still get a little damp. But with an umbrella, you’re 100% covered from the rain- same thing goes for insurance.
Take this scenario for example: Your son has just received his license, but unfortunately gets into a serious accident that injures the other driver. While your son is alright, the other driver has to spend a few weeks in the hospital. A situation like this can produce a TON of medical and legal bills, so much so that your auto policy may not be able to cover all of the costs. THAT’S where the umbrella policy come in. If the total cost of your son’s accident is $500,000, but your auto policy only pays out $300,000, your CT insurance umbrella policy will cover the remaining $200,000.
The usual umbrella policies range from around $1 million to $5 million of additional coverage, so you should be FULLY covered. If you have any other questions about a policy like this, give us a shout!