A personal liability insurance policy protects an individual from the risk that they may be sued and held responsible for injuries and damages caused to others. These policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. However, the legal payouts are only up to the primary liability policy limits. Without this coverage, individuals would be forced to pay out of pocket for any damages and legal fees.
Why You Should Consider a Personal Umbrella Policy (PUP)
If you’re sued for more than the primary liability amount covered on your personal home, auto or boat policy, you could be personally responsible for the amount that exceeds your primary liability limit. A personal umbrella policy is a second layer of liability coverage that sits on top of the primary liability coverage offered by your personal policies.
Who & What can personal umbrella insurance cover?
- The named insured and all resident relatives
- The costs of legal payouts against you when a covered lawsuit exceeds your primary (also known as underlying) liability insurance limits
- Primary policy coverage gaps, including personal injury liability protection situations such as false arrest, wrongful entry, defamation, humiliation, libel, slander, invasion of privacy
- In court proceedings, an attorney can be hired and retained for you. Their fees are typically covered outside policy limits
Who needs a PUP?
Many of us do. Quite simply, we live in a lawsuit-happy world. If you have assets and you're ever found at fault in a serious automobile accident or sued for a personal accident on or away from your property, you’ll want all the coverage you can get. That's why a personal umbrella policy makes sense for so many drivers and homeowners. It’s affordable supplemental insurance that’s there when your primary insurance hits its limit. That can make a world of difference for expensive lawsuits.
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