What is an umbrella or PUP?

An umbrella policy or Personal Umbrella Policy is excess liability insurance that covers you and your family in the event you or they are at fault in an accident or a guest sustains injuries on your property. It protects your assets, the equity in your home, investments and even future wages in the event of an aggressive law suit.

An umbrella liability policy can be used to boost your liability coverage above your limits on your homeowners, boat, RV, ATV, snowmobile and auto insurance.  Policies start at $1,000,000 in excess liability coverage and are inexpensive.

How Does an Umbrella Policy Work?

An umbrella policy kicks in when the liability coverage on your personal lines insurance policies are not enough to cover damages you caused.

Damages include medical expenses sustained by the other person that resulted from a serious car accident, dog bite, injuries from a fall on your property, or injuries sustained by a child playing on your property. It also includes coverage for damages you caused to someone else’s vehicle or property related to a car accident.

Umbrella's can also provide protection from liability claims that are not usually covered by standard policies. This includes slander, libel, accidents involving rented vehicles, and accidents involving vehicles rented outside of the country or accidental damage to school property.

As an example, let's say you or a family member are at fault in an auto accident.  Your auto insurance might only have a limit of $25,000 to $250,000 that you selected.  That limit may not be enough to cover all of the other driver’s medical expenses and or property damages. If you are sued for $100,000,000, your auto policy might only cover the first $25,000 to $250,000, but you may still be legally liable for the remaining $975,000. If you have a personal umbrella policy, it can provide the extra coverage you need to protect your assets, your home equity, investments even future wages.

Consider these potential real-life PUP scenarios:

• An accident on your swing set causes serious injuries.
• A guest has an accident around your pool that requires surgery.
• You're burning leaves and cause a fire that damages neighborhood homes.
• You accidentally crash your boat into another boat.
• Your teen driver accidentally hits a pedestrian.
• A broken step causes your babysitter or a guest to have an accident.
• Your dog bites someone and you are sued for the damages.
• You post a negative online review that results in an alleged defamation lawsuit.

They are inexpensive policies relative to the coverage you get so get a quote today!