Are you aware that your homeowner’s or auto insurance CT liability policies may not cover the full cost of a claim? To dramatically increase the coverage of your insurance policies, you can purchase an umbrella policy, which can protect you from the financial costs of a devastating loss due to injury or damage to your home or vehicle. This type of coverage is often called “excess liability” coverage because it goes beyond the limits of your basic home or auto insurance policies. Some umbrella policies also include additional coverages not covered by home or auto insurance, such as for professional liability, false arrest, libel, and slander.
If you are found liable for financial damages due to bodily injury or property damage, and the cost is higher than your homeowners or auto policy can cover, your umbrella policy pays the costs up to the limits given by the umbrella policy terms. This may be true even if you are sued for financial damages from your current assets and future earnings and may include legal defense costs. Most umbrella policies require both home and auto insurance to qualify for an umbrella policy and insurance companies may offer umbrella policies starting at $1 million dollars. An umbrella insurance CT policy may be a wise investment to protect your personal assets and income.