Beyond Policy Limits: Do you Need a Personal Umbrella Policy?

Beyond Policy Limits: Do you Need a Personal Umbrella Policy?Accidents happen, that is why you have decided to protect yourself with an insurance policy. But what happens when your insurance policy is just not enough to cover you? That is where having a great Champaign Personal Umbrella Insurance policy comes into play.

A Personal Umbrella Policy (PUP) is a type of insurance that provides coverage beyond what your auto or homeowners insurance does. Your PUP kicks in where your other insurance liability limits max out. For example: If you have an auto insurance policy with $250,000 liability limit, and you run a red light and hit another vehicle, your auto insurance will cover your $250,000 limit.

What happens if the other driver was injured and had to be out of work for a few months to recover? Suddenly the other driver may be suing you for $1 million dollars to cover medical expenses, loss of wages, or pain and suffering. With a $2500,000 auto insurance liability limit, $750,000 would have to come out of your pocket. This is where your PUP would kick in to cover the remaining $750,000 so that you do not have to pay out of pocket putting your bank accounts and personal property, including your home, in jeopardy.

In most cases, you can purchase a PUP in million dollar increments. You should choose a PUP with limits that are at least as much as your net worth. Prices for personal umbrella policies do vary depending on your risk factors, but are generally pretty low in cost. An average two-vehicle household may spend $200 a year for $1 million umbrella coverage.

At Myers Insurance Group we know how important it is to protect yourself in the unfortunate event of an accident. Call us today to find out more information on our Personal Umbrella Policies. 855.534.5707

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