If you see the words “Excess Liability Policy” anywhere, that’s the same thing. It kicks in when the limit on the underlying policy is reached.
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy. An umbrella personal liability policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condominium and auto policy. It will also cover you for things such as libel and slander. Personal Umbrella Coverage (PUP) is an extra policy that offers significant protection against liability claims or lawsuits for serious personal injury.
For example, if your homeowners insurance policy has a $500,000 liability limit, but a catastrophic accident occurs and you are responsible for $1 million in property damage, legal fees, and medical bills, a PUP can cover the remaining $500,000.
Consider a PUP if you:
To purchase a AAA PUP you must have both your auto and home insurance policies with AAA —and there may be other restrictions. A PUP offers a lot of coverage at an affordable rate. If you think this kind of coverage may be right for you, discuss it with your insurance agent.