What To Know About Personal Umbrella Insurance In Denver, CO

Wednesday, 11 August 2021 09:20

Home and auto insurance policies are incredibly important for your day-to-day life. However, those policies alone may not offer enough coverage for your needs. A personal umbrella policy can help supplement your current coverage and keep all of your assets well protected. But what exactly is this policy? And how does it work? Today we're breaking down everything you need to know about personal umbrella insurance in Denver, CO.

What Is Personal Umbrella Insurance?

A personal umbrella policy, or PUP for short, is a form of personal liability insurance (Allstate). It offers you protection against larger liability claims that exceed the coverage limits of your auto or home policies.

For instance, let's assume you get into a car accident that, unfortunately, turns into a multi-car accident. The property damage coverage of your auto insurance may not be high enough to cover all the accident victims' vehicles. And your personal liability coverage may not be high enough to pay for their medical bills either.

That's where personal umbrella insurance in Denver, CO comes in handy.

What Does Personal Umbrella Insurance Cover?

Because they are designed to protect you from potentially devastating claims, personal umbrella policies provide broad coverage. Once the coverage limits of your other insurance policies have been reached, your PUP will come into play.

Typically a PUP will offer coverage for:

  • Injuries (bodily and personal)
  • Property damage
  • Certain lawsuits (e.g., slander, libel, false arrest, etc.)
  • Personal liability situations
  • And even landlord liability

So many things can be covered by an umbrella policy that the question shouldn't be, "what does a PUP cover?" Instead, we should be asking, "What is not covered by a PUP?"

Well, a PUP policy will cover any incident that it does not specifically exclude (Value Penguin). Those exceptions may include:

  • Damage to your own property - A PUP is a liability policy, so it only covers you if you're held responsible for damage to someone else's property.
  • Criminal or intentional actions - If you or another policyholder causes intentional damage or participates in a criminal act, your PUP won't cover the costs of the lawsuit.
  • Business or professional losses- For those situations, consider purchasing business liability insurance.
  • Written or oral contracts - If you agreed to assume liability under a contract that you signed, your PUP likely won't cover that liability.
  • Any liability related to war or armed conflicts - However unlikely, financial losses associated with war are too high for insurance companies to cover.

When Umbrella Insurance Comes In Handy

Believe it or not, your umbrella policy can be invaluable in many situations. Here are just a few examples of when your PUP will come to your rescue:

  • A guest gets injured on your property and they end up with some steep medical bills, so they decide to sue you.
  • You have guests over for a party, one leaves and gets a DUI while on the way home. So they decide to sue you.
  • Your dog causes harm to one of your neighbors and they sue you to cover their medical expenses.

And that's just a taste of what a PUP policy can cover. Your personal umbrella insurance policy may even cover things like malicious prosecution, invasion of privacy, wrongful entry, and other hazards.

Do You Need Personal Umbrella Insurance In Denver?

Virtually anyone can benefit from a personal umbrella insurance policy. Some accidents can result in astronomical expenses, and they can happen to anyone. A single personal liability lawsuit can lead to financial instability.

A good rule of thumb is to simply ask yourself this question: "Am I at risk of being sued?"

Everyone is (obviously). But, if your everyday activities put you at greater risk of incurring excess liability, then you should purchase a personal umbrella policy. You might be more likely to get sued if you:

  • Own property, and rent it out too
  • Employ household staff
  • Have teenage drivers
  • Own dogs
  • Have a pool, hot tub, or trampoline
  • Host large parties consistently
  • Or are a public figure

The more likely you are to be sued, the more reason you have to purchase umbrella insurance.

Protect Your Assets With Personal Umbrella Insurance In Denver, CO

Don't let a small mistake turn into your financial ruin. Our experienced agents at Adler Insurance Group will develop a custom umbrella policy for you to help protect you from potentially devastating lawsuits. We will help you gain absolute peace of mind about your financial well-being with a PUP that covers all the gaps.

Contact Adler Insurance today to request your FREE quote for personal umbrella insurance in Denver, CO.