If you have assets or a good income, then the simple answer is, yes!
A personal liability umbrella policy (PLUP) will give you extra coverage above and beyond the coverage that you already have on your home and auto insurance. The PLUP is an inexpensive way to give you additional peace of mind and protect your assets.
The PLUP could give you an additional layer of liability coverage in the event that you are sued for:
- Auto accidents
- Accidents at your home that lead to a guest’s injuries
- Various personal activities
As an example, you are at fault for an auto accident. Your auto liability coverage is at $250,000 for injuries so your auto coverage will cover that amount. If the other person’s injuries are severe and the medical bills exceed $250,000, your liability umbrella will cover the excess, up to the PLUP’s limit. Without a PLUP, you would likely be personally responsible to pay for the additional medical bills.
Most insurance companies will also give you a discount on your home and auto insurance for having a personal liability umbrella policy. The discount will make your auto and house insurance cheaper.