Personal Umbrella Policies (PUP), are sometimes called an "Umbrella" policy because it provides additional liability coverage that extends above and beyond your Automobile Insurance or Homeowners insurance and may cover more situations with higher limits. It offers protection usually starting at $1 million for you and you family against expensive and potentially devastating liability claims and/or judgments. Personal Umbrella Policies can also supplement other insurance policies like watercraft, motorcycles and RV's.
Five reasons we recommend PUPs to our clients:
1. Protect your assets.-All your assets are protected in case of an unforeseen accident. This includes your car, house, investments, retirement accounts, checking and savings accounts, and even future income.
2. Protects you.- You are protected for incidents that you might not even consider, such as if you are liable for injuries while traveling abroad, or for any rentals, such as a boat, Jet Ski, or car provided by your employer.
3. Provides peace of mind.- The policy will provide the peace of mind that you, your loved ones, and your assets are protected against large lawsuits.
4. Pays legal fees.- The costs of legal defense can be staggering and must be paid even if you win. A personal umbrella policy pays these fees in addition to your umbrella limit of insurance.
5. Protects your charity work.-If you are an active member in your community or with a local nonprofit charitable, religious, or civic organization, most companies automatically cover you if anything happens while you are volunteering for the organization.
How Umbrella Insurance WorksAn Umbrella Policy works by extending your Automobile Insurance or Homeowner’s Policy liability insurance coverages. Automobile Insurance has limits usually starting around 25/50/15 up to 500/500/500, and Homeowner’s Policy liability coverage typically can be purchased with limits of $100,000 to $500,000, depending on your insurer carrier and the types of coverage. If your families net worth is greater than the liability coverage ( savings and checking accounts, cars, home equity, & FUTURE EARNINGS) are at risk if an accident results in a large judgment against you.
That’s where Personal Umbrella Policies (PUPs) can protect you. Umbrella Policies start at $1 million in coverage and are available with limits as high as $10 million, depending on your insurance carrier. Premiums generally start at around $600 - $700 year!
Example: You are the driver in an at fault automobile accident which results in major injuries to another person, you may be responsible for substantial medical bills, an award for pain and suffering. With the protection of a an Umbrella Policy, you will first be covered by your automobile insurance policy (minimum liability coverage is typically 250/500 to qualify for the Umbrella Policy), and once that liability coverage is exhausted your Umbrella Policy will begin providing coverage up to the policy limit (Usually $1 million-$10 million depending on the policy).
If have further questions regarding Umbrella Policies, Automobile Policies or Homeowner Policies please contact our office at 800-556-3499.
We are licensed in Arizona, Georgia, Idaho, Nevada, and Tennessee.