Although this umbrella won't necessarily keep you dry, the financial benefits of protecting assets with a personal umbrella policy in the case of a large liability incident can give consumers peace of mind.
A personal umbrella policy, or PUP, not only offers added liability protection in the case of an auto accident it can also offer added coverage if you unintentionally cause property damage or bodily injuries. A PUP provides reimbursement for attorney costs, lost wages and even covers your liability while using high-risk vehicles such as ATVs, boats and snowmobiles.
"A PUP can provide coverage in situations where your personal assets would be at stake if existing insurance coverage doesn't cover the cost of an accident," said Sandy Smith, Allstate line manager. "Liability cases have PUP potential."
A personal umbrella policy is optional and it can protect personal assets as long as the underlying homeowners or auto policy meets the minimum required coverage limits. Typically, a personal umbrella policy is available in million-dollar increments from $1 million to $5 million.
Here are a few situations where having a PUP can make good financial sense:
Teenage Driver Yikes, your child is now legal to drive and your teenager causes an accident with injuries to the other driver that go beyond your auto policy coverage limits.
Summer Barbecues If an accident happens to someone on your property at a summer barbecue for example, a PUP can provide additional coverage over the existing homeowners policy to pay for medical expenses due to bodily injury or even property damage.
International Travel PUP coverage can provide peace of mind if you rent a boat or car while on vacation in some international countries and have an accident that causes damage that goes beyond your coverage limits.
An Allstate agent can help explain more about why a personal umbrella policy may be a good choice.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, protecting approximately 16 million households from life's uncertainties through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate is widely known through the slogan "You're In Good Hands With Allstate®." The Allstate brand's network of small businesses offers auto, home, life and retirement products and services to customers in the United States and Canada. In 2013, The Allstate Foundation, Allstate, its employees and agency owners gave $29 million to support local communities. Allstate employees and agency owners donated 200,000 hours of service across the country.