What Is a Personal Umbrella Policy?
A personal umbrella policy (PUP) is a liability insurance policy that provides coverage above and beyond the limits of your existing home, auto, boat, or other personal insurance policies. It is designed to protect your assets — your home, savings, investments, and future earnings — from large liability claims and lawsuits.
Umbrella policies are typically sold in increments of $1 million and are remarkably affordable relative to the protection they provide. Most people are surprised to learn that $1 million in additional liability coverage can cost less than $200 per year when bundled with qualifying underlying policies.
Important: An umbrella policy requires underlying coverage (auto, home, etc.) to be in force with minimum liability limits. We can review your current policies to confirm you meet the requirements before binding umbrella coverage.
What Umbrella Insurance Covers
Excess Liability Over Auto
When an auto accident exhausts your car insurance liability limits, umbrella coverage picks up where your policy leaves off — protecting your savings, home, and future income.
Excess Liability Over Homeowners
If someone is injured on your property and your homeowners liability limit is exceeded, an umbrella policy provides the additional layer needed to cover medical costs, legal fees, and judgments.
Personal Injury Liability
Covers claims of libel, slander, defamation, false arrest, and invasion of privacy — exposures that standard home and auto policies often exclude entirely.
Rental Property Liability
If you own rental property, umbrella coverage can extend liability protection beyond your landlord policy for tenant injury claims and related lawsuits.
Watercraft & Recreational Vehicle Liability
Liability arising from boats, ATVs, UTVs, and other recreational vehicles can be covered under an umbrella policy when underlying coverage is in place.
Worldwide Coverage
Unlike most standard policies, personal umbrella coverage typically follows you anywhere in the world, providing protection for incidents that occur while traveling abroad.
Real-World Scenarios
Serious Auto Accident
You cause a multi-vehicle accident resulting in $800,000 in bodily injury claims. Your auto policy covers $300,000. Your umbrella covers the remaining $500,000.
Pool or Trampoline Injury
A guest is seriously injured at your home. Medical bills and a lawsuit total $600,000. Your homeowners covers $300,000. Umbrella covers the rest.
Dog Bite Lawsuit
Your dog bites a neighbor who requires surgery and sues for $400,000. Your homeowners liability is $100,000. Umbrella bridges the gap.
Social Media Defamation
A post you share online leads to a defamation lawsuit for $250,000. Most home policies exclude this. A personal umbrella policy typically covers it.
Who Should Consider Umbrella Coverage?
While anyone can benefit from umbrella insurance, it is especially important for individuals who own a home, have significant savings or retirement assets, own rental property, have a teenage driver, own a pool, trampoline, or dog, or have a high public profile. If you have assets worth protecting, an umbrella policy is one of the most cost-effective ways to do it.
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