Probably the biggest exposure any of us has is in our personal life is driving in our car and living in our home. Catastrophic accidents do not happen often. If they do, however, the results can be devastating, especially if we do not have enough insurance. We may carry auto and homeowners insurance, but these may not provide enough protection. That is where the Personal Umbrella Policy comes in.
A Personal Umbrella Policy (PUP)covers you for damages and costs you or a family member have to pay if sued—beyond what is covered by your underlying auto, home, motorcycle, boar, RV, policies. For example, if you have a bad automobile accident and are at fault, your primary auto policy will provide the first layer of coverage. Your Personal Umbrella Policy will provide the final layer until policy limits are exhausted. If someone is injured on your property, and the injury requires surgery, the medical bills may exceed the coverage on your homeowner’s policy. Your PUP will kick in until its limits are exhausted.
Who is Covered?
Generally, you, your spouse or domestic partner, and resident relatives who are still dependent upon you are covered. In addition, coverage generally extends to a person using your covered vehicle with permission.
Where is Coverage Applicable?
Depending on your policy, coverage is worldwide.
How Much does a PUP Cost?
The cost is minimal, because the exposure is minimal. Again, depending on the company, you may be charged more because of accidents, tickets, additional vehicles, additional homes, or teenage drivers.
How much coverage do I need on my primary policies?
Generally, you need $300,000 liability limits on your primary auto and homeowner’s policy. If you fail to carry adequate limits, a gap may ensue. You would be responsible for filling this gap.
How do I purchase a Personal Umbrella Policy?
Simply call our office and talk with your Account Manager. Special programs are available for healthcare professionals.
Barbara Gracey Backer
Barbara Gracey Backer is the Vice-President of Gracey-Backer, Inc., an Insurance Agency in Delray Beach, Florida specializing in All Lines of Professional and Personal Insurance. She may be contacted at 800-272-6055 X118 or at firstname.lastname@example.org.