Personal Umbrella Policy
Personal Umbrella Policy
A Personal Umbrella Policy (PUP), Joe, is a type of insurance that provides additional liability coverage beyond what your primary insurance policies (such as homeowners or auto insurance) offer. It acts as an “umbrella” of protection, offering higher liability limits and broader coverage. Here’s what a Personal Umbrella Policy typically covers:
A PUP provides extra liability coverage above and beyond the liability limits of your primary insurance policies. For example, if you have a homeowners insurance policy with a liability limit of $500,000 and a PUP with a limit of $1 million, your total liability coverage becomes $1.5 million.
PUPs often provide coverage for liability claims that may not be covered by your primary policies. This can include coverage for defamation (libel or slander) claims, false arrest, invasion of privacy, and more.
The PUP typically covers legal expenses associated with defending yourself in a liability lawsuit. This can include attorney fees, court costs, and other legal expenses.
Personal Umbrella Policies often provide coverage worldwide, which means you're protected not only in the United States but also when traveling abroad.
If you're involved in a serious auto accident, and the liability claim exceeds your auto insurance limits, a PUP can provide extra coverage to protect your assets.
If you own rental properties, a PUP can extend liability coverage to those properties, offering protection in case a liability claim arises from a tenant or visitor.
Personal injury claims related to non-physical harm, such as defamation or false imprisonment, are typically covered by a PUP.
It’s important to note that a Personal Umbrella Policy does not cover your own property or physical injuries to yourself or others; it primarily focuses on liability protection. Additionally, you usually need to have certain minimum liability limits on your underlying insurance policies (like auto or homeowners insurance) to be eligible for a PUP.
Personal Umbrella Policies are important for individuals with significant or substantial attachable assets to protect or those who want extra peace of mind in case of unforeseen liability claims. Discussing your specific needs with your insurance agent can help determine if a PUP is a good fit for you.