What Is A Personal Umbrella Policy (PUP)?
Protect yourself from a scenario where your "regular insurance" isn't enough. A personal umbrella policy is called an "umbrella" policy because it provides liability coverage over and above your standard auto insurance or homeowners insurance. It offers protection for you and your family against large and potentially devastating liability claims or judgments. In short, a personal umbrella policy kicks in right where your other liability underlying limits have been reached.
Why Would You Want One?
Personal umbrella policies are optional, but they do provide extra protection. Here's an example of why you might want one: You're at fault for an accident that injures another driver. Your auto or homeowners policy liability coverage pays up to your limit; let's say it's $250,000. But the other driver has a high-paying job, and she can't work for six months because of her injuries. Now she's suing you for $1 million, and your car insurance only covers $250,000. Your personal umbrella policy can cover the difference up to your policy limits
Personal Umbrella Policy Limits
Typically, personal umbrella policies are available in million-dollar increments from $1 million to $5 million. Personal umbrella policies can also include coverage for the following situations:
- If you're sued over an incident covered by your PUP, may retain and pay for your attorney.
- You're protected no matter where you are—even when you're out of the country.
- You could be covered for any wages lost due to a court appearance, up to the limits specified in your PUP policy.
