You have insurance, right?
So, why would you need a layer of protection over the coverage you already have. A personal umbrella policy, often called a PUP, can “extend” the coverage you have, and may even offer protection that your other policies don’t. Here are a few examples to illustrate why a PUP could be an important addition for you.
What does a Personal Umbrella Offer?
PUPs can provide protection over your home and auto policies. And often, an additional $1 million in coverage may cost you just a few hundred dollars per year. While these policies are generally written by the same insurance company that covers your home and auto, there are “standalone” policies available that can be written over different companies.
In a litigious society, lawsuits can include medical bills, disability, and other damages that may be higher than the limits available on your home or auto policy. With social inflation impacts, verdicts from these lawsuits seem to be getting higher and higher. If you were sued and the verdict was higher than the limits of your policy, what would you do? Cash in some of your other assets? Take money from your retirement? A PUP may provide a much sounder option to avoid ruining your financial plan.
In addition, PUPs may provide you with coverage where your other policies do not. For example, some PUPs extend your auto coverage if you have an accident with an uninsured or underinsured motorist (per policy language). In some cases of liability such as slander, false arrest, wrongful eviction, and others, your PUP may be a “line of defense” for coverage and even court costs.
And while you may feel like these are all unlikely scenarios, they happen much more often than you might expect. Having a PUP in place can be a cost efficient way to be more prepared for the worst.
Let us help review your risks and discuss your need for a PUP!