PUP Excess Liability

Would Your Homeowner's Policy Cover A Big Lawsuit?

A Personal Umbrella Policy (PUP) is often sold to individuals who have a certain amount of wealth to protect, which can be as little as a modest home or a 401k. Additionally, they are used to cover the gaps that are outside the range of standard coverages. For instance, if you are the at-fault party in an automobile accident, and you standard policy covers $50,000, you might be on the hook if there are expensive injuries or you totaled a luxury car. You might also be sued for lost earnings of the other parties, and if you happen to drive around Scottsdale, Beverly Hills, or Palo Alto, then you are in serious need of that extra protection.

Personal Umbrella Policy PUP policies can also cover things like retaining and paying for attorneys, or coverage for your own lost wages due to court appearances. In many cases these policies will also protect you for actions anywhere in the world. Personal Umbrella Protection goes far beyond many homeowner's, renter's and automotive policies, and can protect your future financial stability against high claims against you and your family members.

High Net Worth or Modest Homeowners Need Coverage

People with a high net worth tend to get PUP policies in order to make sure that their assets are shielded for liability claims should something happen on their properties or by way of their actions. A dog bite injury, incident on a property, or injury to gardeners or maintenance staff could result in a big claim. However, you don't need a great amount of wealth to be at risk for an asset-destroying incident. An injury accident in which you are at fault might result in multiple claims, and suddenly your home and retirement savings may be forfeited.

Discount For Combined Coverage

In almost every case, PUP policies are sold as an adjunct to existing homeowner's or automotive coverage by your local agent. There is usually a discount for getting multiple policies, and the cost can be as little as five hundred dollars per every million dollars of insurance coverage. According to a New York Times article, advisers recommend getting an amount of coverage equal to your net worth. Despite the fact that wealth-destroying incidents can be unusual, they do happen. Even if you are brought to court for a civil case that is decided in your favor, you could still be on the hook for tens of thousands of dollars in attorney fees, which many personal umbrella policies would have covered.