Personal umbrella protection, known as PUP, is designed to provide policy holders additional coverage above and beyond the coverage the homeowner’s insurance or car insurance coverage provides.
Personal umbrella protection usually provides up to $1,000,000 of coverage.
Sometimes policy holders are required to hold at least $250,000 of car insurance coverage before they are allowed to purchase personal umbrella protection.
The best way to illustrate how personal umbrella protection works is to provide an example.
Imagine that you are involved in an automobile accident and you are found to be at fault for the accident. The other driver suffered $500,000 of damages. Your car insurance policy has a limit of $250,000. The car insurance will pay the other driver $250,000, but you are still liable for $250,000. Your personal umbrella protection will come into play and cover the additional $250,000.
The personal umbrella protection provides coverage for personal injury, property damage, and various lawsuits such as libel, false arrest and slander.
At this point you may be wondering why you should purchase personal umbrella protection.
There are two main benefits to purchasing personal umbrella insurance.
First, you will not have to worry about finding a way to pay for damages that exceed your policy limit in the event that you are sued. This peace of mind often convinces a lot people that purchasing personal umbrella protection is right for them.
Additionally, personal umbrella protection provides coverage in situations where other policies do not provide coverage. Other policies do not cover false arrest, libel and slander. If you were sued for these claims you would have no insurance coverage to help you pay for any possible damages.
If you have any questions about personal umbrella insurance that were not answered by this video you should contact the lawyers at Hutchison & Stoy.
We offer free case evaluations to individuals who are attempting to determine what their legal rights are.
Contact us today. The Warriors For Justice are here to help.