Insurance can be a costly word to many, but in this post we discuss in an abbreviated form from our coming Newsletter, the PLUP – You may not want to leave home without it!
Personal Liability Umbrella Policy – AKA PLUP
This coverage is an add-on to your auto or homeowners policy. This coverage kicks in as a pseudo major medical similar upper limit coverage for liability should you need the extra protection. Given the cost, it is easy to see this coverage is not utilized frequently, but had the personal experience above been slightly different, maximum limits could have easily been met, needing the Umbrella for continued asset protection.
In a world of sometimes seemingly ever higher costs, the PLUP is very affordable. Experiences have shown annually, cost of usually between $200 – $500 for $1 Million – $2 Million in coverage. (Yes that is correct, two to five hundred dollars annually.)
Insures your base Coverage are correct
Another neat and settling feature of the PLUP is that it mandates that your standard or base coverage are correct. The reason for this is that the Umbrella Policy actually sits on top of your standard coverage, again similar to a major medical policy sitting on top of your standard health coverage, to only kick in when the base coverage are maxed out.
What you are protecting Coverage
The most obvious assets at risk are after tax dollars such as checking, savings and investments including Revocable Trusts. In a bad situation, without the PLOP policy these assets may be at risk in the event of a liability judgement is made on you.
The crazy accident at your home, where an acquaintance falls down unexpectedly and injures themselves badly and you later find out that this acquaintance is not so friendly and has a desire to hold you accountable for their incident.
Those with kids that may have kid friends over and a similar occurrence from above happens.
Anyone who drives the streets today has some possible liability. As mentioned in our personal opener, the outcome of the personal situation could have been much different.
Watch for a more detailed article in our coming Newsletter, meanwhile, if you do not have a PLUP, you may want to call your insurance agent and check into it!
Have a Great “PLUP” Covered Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth