Learn more about the Proper Umbrella Coverage Amount

Personal Umbrella Policy: You might ask what is it?

A Personal Umbrella Policy (PUP) is an additional layer of liability insurance that provides coverage above and beyond the limits of your primary insurance policies, such as auto, homeowners, or renters insurance. Here is everything you need to know about a Personal Umbrella Policy:

1. Coverage Limits:

A Personal Umbrella Policy typically provides coverage in increments of $1 million and can extend your liability coverage up to $10 million or more. This additional coverage kicks in when the limits of your underlying policies are exhausted.

2. Types of Coverage:

A Personal Umbrella Policy offers broad coverage for various liability risks, including:

   a. Bodily Injury: Covers medical expenses, legal fees, and damages if someone is injured due to your negligence.

   b. Property Damage: Covers costs to repair or replace property that you damage or destroy.

   c. Personal Injury: Protects against claims of libel, slander, defamation, or invasion of privacy.

   d. Legal Defense: Covers legal expenses, court costs, and attorney fees in case of a lawsuit.

3. Benefits of a Personal Umbrella Policy:

   a. Increased Protection: Provides an extra layer of financial protection in the event of a costly lawsuit or liability claim.

   b. Comprehensive Coverage: Offers broader coverage than standard insurance policies, filling gaps in coverage limits.

   c. Worldwide Coverage: Extends coverage worldwide, including incidents that may occur while traveling abroad.

   d. Peace of Mind: Offers peace of mind knowing you have additional protection against unforeseen liabilities.

4. Exclusions:

While a Personal Umbrella Policy provides extensive coverage, it may have exclusions for certain types of claims, such as intentional acts, business-related liabilities, and professional errors. Review your policy carefully to understand what is covered and excluded.

5. Cost and Affordability:

Personal Umbrella Policies are generally affordable considering the amount of coverage they provide. The cost of a PUP depends on factors such as the coverage limit, your risk profile, and the insurance company. It is a cost-effective way to increase your liability protection.

6. Eligibility:

To qualify for a Personal Umbrella Policy, you typically need to have underlying primary insurance policies, such as auto and homeowners insurance, with specific liability limits. Insurance companies may require minimum coverage limits on your primary policies to be eligible for a PUP.

7. Consultation and Review:

It is advisable to consult with a member of the Cambridge Risk Advisors to assess your liability risks and determine if a Personal Umbrella Policy is suitable for your needs. Review your coverage limits and consider the potential financial impact of a liability claim to determine the appropriate coverage amount.

In conclusion, a Personal Umbrella Policy is a valuable tool to enhance your liability protection and safeguard your assets against unforeseen risks. By understanding the coverage options, benefits, and affordability of a PUP, you can make informed decisions to protect yourself and your finances.

For personalized advice and assistance in selecting a Personal Umbrella Policy tailored to your specific needs, consult with The professionals at Cambridge Risk Advisors Alexander Gagnon Shaun Gagnon who can help you navigate the complexities of liability insurance coverage.

Regards,

Shaun Gagnon