How Personal Umbrella Insurance Provides Additional Peace of Mind

In an increasingly litigious world, standard insurance policies often aren’t enough to protect you from significant financial losses. Auto and home insurance cover many scenarios for Connecticut residents. However, these policies have limits that may not fully cover a lawsuit or large liability claim. As part of a comprehensive Connecticut insurance strategy, personal umbrella insurance offers extra security, extending your coverage and giving you peace of mind. Here’s a closer look at how personal umbrella insurance can protect your assets from unforeseen financial risks.

Who Needs Personal Umbrella Insurance?

While personal umbrella insurance can benefit anyone, certain individuals are at higher risk for needing extended liability coverage. Homeowners, for example, may face legal complaints if someone suffers from injuries on their property. 

Similarly, car owners, especially those with teenage drivers, are at a higher risk of accidents, which could lead to expensive legal claims.

If you own significant assets — such as a home, business, or investments — or engage in activities that expose you to liability, like hosting public events, you should seriously consider umbrella insurance. 

These types of high-risk exposures increase your chances of needing coverage beyond what standard Connecticut insurance policies provide. Without the added protection of an umbrella policy, you could be responsible for paying out-of-pocket for damages or legal fees that exceed the limits of standard coverage.

The Stakes Are Higher Than Ever

Personal umbrella insurance is particularly important in light of recent legal trends. The Claims and Litigation Management Alliance reports that nuclear verdicts — court awards over $10 million — have ballooned in frequency and size. Between 2012 and 2022, the median nuclear verdict reached $21 million, with the mean climbing to $89 million, especially in auto accident and product liability cases, according to a U.S. Chamber of Commerce Institute for Legal Reform study. 

These astronomical verdicts have become more common in states like California, Florida, New York, and Texas, where half of the nation’s nuclear verdicts are handed down. These kinds of verdicts often occur in cases involving personal injury, wrongful death, and negligence, making personal umbrella insurance essential.

Benefits of Personal Umbrella Insurance

Personal umbrella insurance kicks in when the liability limits on your auto, home, renters, or other standard coverages are exhausted. Consider the advantages of having this coverage in place in case of costly claims.

Extended Liability Protection

One of the most significant benefits of personal umbrella insurance is the extended liability protection. Standard home and auto insurance policies typically come with limits — often ranging from $100,000 to $500,000 — that may not be enough in high-stakes legal cases. 

Imagine, for instance, getting into a major car accident where medical expenses and legal fees far exceed your auto insurance limit. Without umbrella coverage, you could be responsible for the remaining amount, potentially putting your savings, home, or other assets at risk.

An umbrella policy can increase protection by millions, ensuring your assets, including savings, investments, and property, are not at risk of being seized to pay for legal judgments.

Protection Against Unforeseen Risks

Umbrella insurance covers rare but potentially devastating risks. For instance, if you’re facing false accusations of slander or wrongful arrest, your standard insurance policy won’t cover the legal fees or settlement. However, an umbrella policy can typically provide a financial cushion for these unforeseen liabilities.

Cost-Effectiveness

Many people assume that the additional coverage offered by umbrella insurance comes with a hefty price tag. In reality, umbrella insurance is surprisingly affordable. 

For just a few hundred dollars per year, you can purchase a policy that offers $1 million or more in additional liability protection. This low premium relative to the high coverage limits — and the potentially exorbitant costs of lacking coverage — makes umbrella insurance a cost-effective way to protect your financial future.

Round Out Your Connecticut Insurance With Personal Umbrella Coverage

If you’re considering a personal umbrella insurance policy, start by evaluating your current assets and liabilities. Consider factors like your home’s value, your investments, and any potential risks associated with your lifestyle. 

From there, compare your current Connecticut insurance coverage limits with the value of your assets. If there’s a gap, personal umbrella insurance can help fill that void, ensuring you’re safe from lawsuits that could otherwise threaten your financial security.

Whether you’re a homeowner, a car owner, or simply someone who wants to secure their financial future, umbrella insurance is a smart investment. Contact Byrnes Agency today for a personalized risk assessment, and we can help tailor a personal umbrella policy to your needs.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

If you’ve enjoyed what you’ve read here and would like to know when we’ve published a new blog post, please “like” us on our Facebook page, and share this with your Connecticut neighbors.