Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Umbrella insurance
Old 07-18-2019, 02:47 PM   #1
Dryer sheet aficionado
 
Join Date: Jul 2018
Posts: 27
Umbrella insurance

We are looking to increase our umbrella limit. Currently we have a policy with $2mm coverage. Looking to increase it to $3mm or $4mm for additional comfort. However, after talking to our GEICO agent, I was surprised to find that the third and the fourth million is priced higher than the second million. More specifically, the first million of umbrella coverage costs $230, the second million costs additional $150, the third costs an incremental $180, and the fourth costs $190. I would think that marginal cost of additional coverage would go down, but it actually goes up. Why is that the case? Am I missing something here?

Also, (and this may sound pretty dumb), does the stated limit on umbrella coverage include the limit on primary insurance (auto and home)? In other words, if my auto liability coverage is $500k, and I carry a $2mm umbrella insurance, does that mean I am covered for $2.5mm for auto liability?

Thanks!
__________________

Housewife is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-18-2019, 02:52 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Oct 2013
Posts: 1,200
Lots of previous threads on the topic.

Most recent one: Calculating Umbrella Insurance Needs
__________________

__________________
“Peace is not something you wish for; It’s something you make, something you do, something you are, and something you give away." - John Lennon
candrew is offline   Reply With Quote
Old 07-18-2019, 02:53 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,652
Quote:
Originally Posted by Housewife View Post
....if my auto liability coverage is $500k, and I carry a $2mm umbrella insurance, does that mean I am covered for $2.5mm for auto liability? ...
Yes.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 07-18-2019, 03:04 PM   #4
Dryer sheet aficionado
 
Join Date: Jul 2018
Posts: 27
Quote:
Originally Posted by candrew View Post
Lots of previous threads on the topic.

Most recent one: Calculating Umbrella Insurance Needs
A wealth of information! Thank you.
Housewife is offline   Reply With Quote
Old 07-18-2019, 03:04 PM   #5
Dryer sheet aficionado
 
Join Date: Jul 2018
Posts: 27
Quote:
Originally Posted by pb4uski View Post
Yes.
That is comforting. Thank you.
Housewife is offline   Reply With Quote
Old 07-18-2019, 06:46 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 1,673
Why go above $2 million?

It's clear from the many discussions here & over on bogleheads.org you don't see judgments against individual defendants exceeding even $1 million unless they were DUI.

If an individual is badly injured nothing stops them from asking for well over what you can afford to insure...I was peripherally involved with a suit from an individual who was left a paraplegic from a fall at the business where I worked...they demanded eight figures in their lawsuit, rejecting a seven figure settlement offer, took it to trial, & lost.
ncbill is offline   Reply With Quote
Old 07-19-2019, 08:02 AM   #7
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 766
Quote:
Originally Posted by ncbill View Post
Why go above $2 million?

It's clear from the many discussions here & over on bogleheads.org you don't see judgments against individual defendants exceeding even $1 million unless they were DUI.

If an individual is badly injured nothing stops them from asking for well over what you can afford to insure...I was peripherally involved with a suit from an individual who was left a paraplegic from a fall at the business where I worked...they demanded eight figures in their lawsuit, rejecting a seven figure settlement offer, took it to trial, & lost.
+1

We don't plan on increasing ours above $2M even though our net worth is above that figure.
mrfeh is offline   Reply With Quote
Old 07-19-2019, 08:19 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Apr 2011
Posts: 2,619
Quote:
Originally Posted by ncbill View Post
...........I was peripherally involved with a suit from an individual who was left a paraplegic from a fall at the business where I worked...they demanded eight figures in their lawsuit, rejecting a seven figure settlement offer, took it to trial, & lost.
"lost" meaning nothing at all?
gerntz is offline   Reply With Quote
Old 07-19-2019, 09:34 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 5,264
will companies write more than $2M?
__________________

__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
To "umbrella" or not to "umbrella"... aza455 Other topics 107 05-19-2016 09:59 PM
Updating insurance coverage: life, auto, home, umbrella (help!) jblack FIRE and Money 7 08-07-2009 10:24 AM
Umbrella insurance and being falsely accused summer2007 FIRE and Money 47 06-08-2009 01:05 PM
protecting assets- umbrella/liability insurance? nphx FIRE and Money 22 01-08-2009 10:00 PM
Umbrella insurance levels while ER ? Delawaredave FIRE and Money 77 11-05-2007 01:25 PM

» Quick Links

 
All times are GMT -6. The time now is 07:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×