A personal umbrella policy (PUP) is a type of insurance that provides liability coverage over and above your automobile or homeowner's policy.
What if you only have $300,000 limits for liability but someone sues your for $1,000,000? If you have assets that exceed the limits of your policy then there is a potential that someone could sue you and then go after your assets. A personal umbrella policy gives you additional limits above and beyond your home and auto limits. This can be a great idea if you have assets that you could lose in the event of a lawsuit. Also many people believe it can be a great idea if they have children that drive. If their child was involved in an at fault accident and were sued, the parents would be on the hook for it. This gives an additional layer of protection.