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Umbrella insurance separate from home/auto ?
Old 05-26-2011, 04:49 PM   #1
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Umbrella insurance separate from home/auto ?

Do all insurance companies require that you have home and auto with them to write an umbrella ?

I don't like having everything "bundled" - I think insurance companies know it is harder for you to switch all three and are more likely to push big annual increases.

Thanks.
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Old 05-26-2011, 04:56 PM   #2
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Some will, some won't. Check and see how you get the best price, combined or separate. You can shop all three if you wish, and if you have an independent agent do it its real easy.
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Old 05-26-2011, 04:57 PM   #3
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Requiring bundling is probably not an unreasonable position to take since they need to know exactly what they are and are not insuring. Otherwise they'd have to have their attorneys scrutinize the other company's insurance policies.
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Old 05-26-2011, 05:05 PM   #4
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I don't believe this is necessary but in some situations could be helpful. For instance, I was with Progressive for six years on automobile insurance and tried to get my home bundled with them; however, the companies that write homeowners for Progressive do not write new policies in Florida.
Many companies do not write homeowners in Florida so how do you get something bundled and then add an umbrella on top of it?

I just switched auto insurance to 21st Century because Progressive upped
my rate $500 a year. Tried to have them write a homeowners but they don't write in Florida. What's a body to do?
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Old 05-26-2011, 05:06 PM   #5
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My insurance agent will only give me a quote for an umbrella policy only if I increase my liability limits on my car insurance.
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Old 05-26-2011, 05:22 PM   #6
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It does not require bundling with the same insurance agency. But the umbrella policy will require certain minimum coverage be in effect with auto/home for the umbrella policy to kick in with coverage. At least that is how mine works.
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Old 05-26-2011, 05:24 PM   #7
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Umbrella insurance is not simply an extension of auto or Ho insurance. They often provide coverage that isn't included in the underlying policies. (An example is Personal Injury coverage for libel and slander that is excluded on the primary HO Policy but sometimes covered on the umbrella)
The requirement for the issuing carrier to also write the auto and HO policies stems from a desire to lessen the expense of underwriting the umbrella. If you qualify for their auto and HO coverage, it is more likely that you will also qualify for umbrella coverage.
Many companies only retain a small portion of the exposure of an umbrella policy and reinsure the rest. This gives the reinsurance company a degree of control over what risks the primary company can accept and also has a lot to do with the limits required to be carried on the underlying auto and HO Policy. 20 years ago min req limts for an umbrella were 100/300/50 for auto and 100 for HO. Nowadays, this has increased to 300/300/100 or 300/500/100 for auto and 300k for HO. Higher limits keeps the reinsuror from paying many claims.
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Old 05-26-2011, 05:26 PM   #8
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I have umbrella coverage that is not with the carrier writing my home and auto insurance. Having a certain amount of home and auto insurance as underlying coverage is required but it doesn't matter that they are with a separate company. It is certainly not required that umbrella coverage be with the same carrier who writes your auto or your homeowners coverage.
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Old 05-26-2011, 05:27 PM   #9
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What I found at one point is that if you didn't bundle, the carrier providing the umbrella insurance required higher liability coverage than if they provided the homeowners and auto insurance themselves.
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Old 05-26-2011, 05:35 PM   #10
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You can always find someone to write your Umbrella without bundling, but you will have to shop around, and you may find cover with a non-admitted company such as Lloyds. Policies from the same company will have less coverage gaps together compared to buying from several sources.
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Old 05-26-2011, 05:43 PM   #11
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Quote:
Originally Posted by Katsmeow View Post
I have umbrella coverage that is not with the carrier writing my home and auto insurance. Having a certain amount of home and auto insurance as underlying coverage is required but it doesn't matter that they are with a separate company.
Can I ask who you are with ? Or PM me, pls.

Nationwide gave me minimum coverages home and auto and they had to have my home and auto to write umbrella. I'll double check tomorrow.
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Old 05-26-2011, 07:47 PM   #12
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Originally Posted by Delawaredave5 View Post
Nationwide gave me minimum coverages home and auto and they had to have my home and auto to write umbrella.
Yep...me too!....and then the umbrella cost crept up every year until I finally cancelled it this year!!
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Old 05-26-2011, 07:52 PM   #13
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Yep...me too!....and then the umbrella cost crept up every year until I finally cancelled it this year!!
My unbrella just went up 17% and this is on top of 10% last year.
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Old 05-26-2011, 08:10 PM   #14
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Umbrella costs for me are the lowest of the bundle and have been rising much more slowly than other coverages. However, I like the bundle. I never want to be in the situation where 2 insurance companies each say the other should pay and I'm stuck in the middle with a loss.
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Old 05-28-2011, 09:21 AM   #15
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Ours has always been bundled.
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Old 05-28-2011, 09:33 AM   #16
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So does everyone carry umbrella? I'm ashamed to say that we only recently heard about it, when our agent recommended it.
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Old 05-28-2011, 09:45 AM   #17
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So does everyone carry umbrella? I'm ashamed to say that we only recently heard about it, when our agent recommended it.
In my view, if you have substantial assets that would not otherwise be exempt from execution, it is a wise thing to have.
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Old 05-28-2011, 09:58 AM   #18
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Our "umbrella" is with State Farm, same as our house insurance. Our autos (3) are insured by AAA.

We don't want to be wiped out by a single accidental problem. We have heard of instances, usually traffic accidents, where the family's assets were sold off to pay for a single incident, so we carry an umbrella that is nearly 2X our net worth. Its high enough that State Farm's lawyers will try pretty hard not to spend it.
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Old 05-28-2011, 10:21 AM   #19
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USAA sent me to a "partner" provider for whom they are the agent because I wouldn't purchase my Renter's Insurance is with them. USAA will write the umbrella policy only if all my insurance with them. My Renter's policy through Universal is $200 and USAA quoted $600.

I had to raise my auto liability to $300k/$500k (which I probably should have had already living in the VERY litigious state of FL) and confirm my Renter's policy liability was $300k. Umbrella was about $350 for $1 million.

From what I understand, you can carry whatever liability limits you want but the Umbrella policy does not start paying out until the $300k/$500k amounts have been paid out.

During the process, one of the insurance people told me that 84% of the dollars they pay out in claims are related to auto accidents. I didn't like the extra cost of the auto insurance but I understand why it is required.
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Old 06-02-2011, 08:51 AM   #20
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Due to a short vacation, I am just now seeing these replies. We have State Farm and the higher Auto limits, so I will talk to our agent again about his suggestion for an umbrella policy. I can see the purpose for carrying it. Thank you. I am always learning here.
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