Umbrella Insurance in Connecticut
Umbrella insurance in Connecticut, for the claim your auto policy cannot absorb
Umbrella insurance in Connecticut is the coverage that shows up after the worst day. Your auto policy pays $250,000 per person. The other driver’s injuries and lost wages come to $900,000. A $1 million umbrella pays the $650,000 difference. Without it, that gap can reach your savings and investments, the equity in your home above Connecticut’s homestead exemption, and up to a quarter of your paychecks for years. That is the whole product, and for most households it costs a few hundred dollars a year.
The Beam Agency writes personal umbrella policies for households across the Farmington Valley and Hartford County, layered over auto and home policies with Travelers and other A.M. Best-rated carriers. Brandon has spent more than ten years in Connecticut insurance and considers this the most underbought policy in the state.
What it covers
A personal umbrella sits above your existing liability policies. It usually starts paying where your auto or home liability limit runs out, for the same kinds of claims, and it can also cover some claims those policies don’t, such as libel or slander. It has its own policy form and its own exclusions, so the umbrella form is what counts.
Auto liability
Auto accidents are where liability limits most often run out. A serious multi-car accident on I-84 or Route 9, a pedestrian in West Hartford Center, a crash involving a teen driver. It happens faster than most people think. Our auto insurance page explains why the Connecticut minimum limits are not a real number.
Home and property liability
Someone falls on your icy front steps in January. A guest is hurt at a backyard party. A contractor’s helper is injured on your property and the contractor’s coverage turns out to be thin. The umbrella extends your homeowners liability.
Rental property
If you own a two-family in New Britain or a rental condo in Farmington, a tenant injury claim can exceed the dwelling policy’s limit. Umbrellas can be extended over landlord policies, and for owners with more than a couple of units, they almost always should be.
Boats, dogs and teen drivers
Boat liability on the Connecticut River or Long Island Sound, a dog bite, and the household’s newest driver are three of the risks that make an umbrella worth buying this year rather than next. Connecticut law makes all three more likely to land on you (see below).
Personal injury
Libel, slander, defamation and invasion of privacy. Not something most people expect to be sued for, but a social media post or a dispute with a neighbor can get there, and many umbrellas include it.
Defense costs
Most umbrellas also pay your legal defense, and many pay it in addition to the limit rather than out of it. Check how your policy treats defense costs: even a claim you win costs money to defend.
Connecticut rules that make an umbrella matter
- The state minimums are low. Connecticut requires only $25,000 per person and $50,000 per accident of bodily-injury liability, and $25,000 of property damage, the level since January 1, 2018. One serious injury claim goes far past that.
- Dog owners are strictly liable. Under Connecticut law, a dog’s owner or keeper is liable for the damage the dog does, whether or not it ever bit anyone before. The main exceptions are a person who was trespassing or teasing, tormenting or abusing the dog, and for a child under seven the law presumes they were doing neither. It covers any damage, not only bites: a dog that knocks someone down counts.
- The family car presumption. When your spouse, parent, son or daughter drives a car you own, Connecticut presumes they were driving it as a family car with your permission, so a claim can come to you as the owner, not only to the driver. The same rule applies to family boats.
- Guests. Connecticut owes social guests the same care as business visitors, which is why a fall at a party is a real claim.
- Alcohol and anyone under 21. If you serve alcohol to someone under 21 at your home and they go on to hurt someone, Connecticut courts allow the injured person to sue you. It is also a crime to give alcohol to a minor, or to knowingly or recklessly let minors have alcohol on your property.
Uninsured and underinsured motorists
An umbrella protects you when you hurt someone, not when an uninsured driver hurts you. In Connecticut, your auto policy’s uninsured and underinsured motorist (UM/UIM) coverage must match your bodily-injury liability limits unless you sign a state form choosing less, and insurers must offer it at up to twice your liability limits. Connecticut doesn’t let you “stack” UM/UIM limits from several cars, but you can buy underinsured motorist conversion coverage, which pays on top of whatever the at-fault driver’s insurance pays instead of subtracting it.
Connecticut does not require an umbrella to include uninsured motorist coverage, and most don’t unless you add it. Some carriers offer excess UM/UIM as an option, usually requiring a set amount of UM/UIM on the auto policy underneath. If you carry high liability limits, it is worth asking for.
How much umbrella coverage do you need
There is no perfect formula, but a simple one gets most families to the right number:
- Add up what a judgment could reach: savings, investments, home equity above Connecticut’s $250,000 homestead exemption, rental property. Qualified retirement plans are generally protected.
- Add a rough figure for future earnings. Connecticut caps wage garnishment at 25% of weekly disposable earnings, but a judgment can draw on it for years, and a working professional in their forties has a lot of paychecks ahead.
- Buy an umbrella at or above that total, rounded up to the next million.
For most households in Farmington, Avon, Simsbury and West Hartford that lands between $1 million and $5 million. Two working parents with a house and two teen drivers are a $2 million to $3 million case, not $1 million. If you are above $5 million in net worth, or your situation includes multiple homes, collector cars, boats or a family trust, that is a high-value home conversation with higher limits and broader forms.
Underlying limit requirements
An umbrella carrier requires minimum liability limits on the policies beneath it, and this is where quotes stall. Requirements vary by carrier; typical ones are:
- Auto: often $250,000 per person / $500,000 per accident bodily injury plus $50,000 to $100,000 property damage, or a $300,000 to $500,000 combined single limit. Some carriers ask for more.
- Homeowners: $300,000 personal liability, sometimes $500,000
- Boat, motorcycle, rental property: usually $100,000 to $300,000 or more, depending on the carrier and, for boats, the size
If your current auto policy is at $100,000/$300,000, the first step is raising it. The umbrella is easiest to place when the underlying policies are with one carrier or at least with carriers the umbrella writer will accept, which is a reason to review the whole household at once rather than one policy at a time.
What it does not cover
An umbrella is broad, but it is not everything.
- Business activities. Your consulting work, the rental you run through an LLC, the side business in the garage. Those need commercial coverage, starting with general liability and a commercial umbrella if the contracts demand higher limits.
- Professional liability. Advice, design, medical or legal work. That is a professional liability policy, not a personal umbrella.
- Intentional acts. Deliberately hurting someone or damaging property is excluded on standard umbrella forms.
- Your own injuries or property. An umbrella is liability coverage. Some carriers offer excess uninsured motorist coverage as an add-on (above).
- Contracts you signed. Liability you took on by agreement is often excluded.
What it costs in Connecticut
A few hundred dollars a year for $1 million is common for a household with a clean record, one home and two cars. Each additional million typically costs less than the first. What moves the price:
- Number of cars, drivers and properties
- Young drivers and driving records
- Boats, jet skis, motorcycles, ATVs
- Dog breed, pool, trampoline
- Whether the underlying policies are with the same carrier
It is the least expensive million dollars of coverage you will ever buy.
Who this is for
Homeowners in Farmington and Unionville with equity and savings. Parents in Avon or Simsbury with a teen who just got a license. A landlord in New Britain or Bristol with a two-family and a primary home. A dog owner in West Hartford. A boat owner in Canton who trailers to the shore in summer. If any of those describe you and you do not have an umbrella, the conversation takes ten minutes and the quote usually surprises people in a good way. Review it alongside the rest of your personal insurance so the layers line up.
Get an umbrella insurance quote
An umbrella is quoted alongside your auto and home policies, so the current declarations pages for both are the most useful thing you can send.
Umbrella insurance questions
How much does umbrella insurance cost in Connecticut?
A $1 million policy for a typical household often runs a few hundred dollars a year. Additional millions cost less per million. Teen drivers, multiple properties, boats and driving violations raise the number. We quote it with your home and auto so the underlying limits match.
Is umbrella insurance worth it if I only have a small amount of savings?
Usually yes. A judgment can draw on future wages for years (Connecticut caps it at a quarter of disposable earnings), not just what is in the bank today, and a young professional with a long career ahead has a lot to protect. If you own a home, drive, or have a teen driver, the cost is low relative to what it covers.
Does an umbrella cover my rental property?
It can, if the rental is scheduled on the policy and the underlying landlord policy meets the carrier’s limit requirement. Rentals held in an LLC or run as a full-time business may need a commercial umbrella instead. Tell us how the property is owned and we will place it correctly.
What limits do I need on my auto policy to get an umbrella?
Often $250,000 per person and $500,000 per accident of bodily injury plus property damage liability, or a $300,000 to $500,000 combined single limit, and $300,000 or more of liability on your homeowners policy. Requirements vary by carrier. If you are below that, raising the underlying limits is step one and is often less expensive than expected.
Does an umbrella cover me if an uninsured driver hits me?
Not unless you add it. Connecticut does not require umbrellas to include uninsured motorist coverage. Your auto policy’s UM/UIM coverage, which in Connecticut matches your liability limits unless you sign to lower it, is the first layer, and some carriers sell excess UM/UIM on the umbrella.
Am I liable if my dog bites someone in Connecticut?
Yes, in most cases. Connecticut makes a dog’s owner or keeper liable for the damage the dog does, even with no history of biting, unless the injured person was trespassing or provoking the dog. Homeowners and renters liability usually covers it up to the limit, unless the policy excludes the breed, and an umbrella can go above that. Tell us about the dog when we quote.
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Talk to Brandon directly
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