To "umbrella" or not to "umbrella"...

[sheehs1]

Yes…2 million and as much so that the insurance company's lawyers will pursue any high claims as anything else.

 

[CaliKid]

If one has assets they should have an umbrella policy. No matter how low the assets. Also, someone above mentioned there assets are "protected." Would you sleep better at night, if you get sued, knowing your assets are "protected" or with a one or two mil umbrella policy? No brainer to me.

For us our insurance costs went DOWN by getting it. That is, we used to have $1m coverage on auto for example. However, we changed to umbrella so reduced to $300k coverage (umbrella kicks in over that). We now have $2m and it's about $350 a year I think. I would say it is mandatory. It is too cheap not have.

 

[audreyh1]

Yes. Very inexpensive insurance for the coverage. While a bit off subject, depending on your state laws, you should also consider maximizing your un and underinsured motorist coverage, which you can generally increase up to the amount of liability coverage under your policy.

My guess is that most folks on this forum have pretty good driving records, but, as we all know, there are a lot idiots driving without any or adequate insurance. In general, if you have 500,000 in liability coverage, but only minimal 10,000 un/underinsured coverage, and you are seriously injured by an un/underinsured driver, the most you would be able to recover on your own policy would be the limit of the un/underinsured motorist coverage. If you increase your un/under motorist coverage to the amount of your liability coverage you can recover up to that limit from your own carrier for your proven damages.

You may aslo you be able to recover from umbrella policy if you had catastrophic injuries, but you would probably have to a minimum amount of underlying un/under coverage before any coverage under the umbrella policy would kick in.

We pretty much max out on this as there are probably tons of uninsured drivers around here, driving without a license, you name it. I want any occupants in my vehicle well covered.

 

[COHgirl]

After reading the posts here, I purchased a 2 million policy from USAA effective today.

My homeowners and auto needed to have their limits increased in order to get this. Each premium increased about $20 a year. The umbrella cost is $130.79.

It basically costs us $170 a year for all the extra coverage.

 

[Walt34]

After reading the posts here, I purchased a 2 million policy from USAA effective today.

A wise thing to do. Here's hoping that, like fire insurance, you never need it.

 

[Buckeye]

After reading the posts here, I purchased a 2 million policy from USAA effective today.

My homeowners and auto needed to have their limits increased in order to get this. Each premium increased about $20 a year. The umbrella cost is $130.79.

It basically costs us $170 a year for all the extra coverage.

$130 for $2 million in coverage? That's an incredible price! Really, $130? You must live in a very non-litigious state. Who is the underlying carrier? I have RLI with USAA.

 

[ShortInSeattle]

I thought this thread was going to be about rain umbrellas.

Liability Umbrella: Yes
Rain Umbrella: No
That annoying song about Umbrellas: No

I'm full of opinions today!



SIS

 

[Gumby]

$130 for $2 million in coverage? That's an incredible price! Really, $130? You must live in a very non-litigious state. Who is the underlying carrier? I have RLI with USAA.

That is a spectacular price. I have a $2 million umbrella with USAA and it's $610 per year.

 

[MichaelB]

I just got my renewal notice this morning - $520 for $2M coverage.

 

[braumeister]

That is a spectacular price. I have a $2 million umbrella with USAA and it's $610 per year.

It's related to geography more than most other factors, I think.
My $2M umbrella from USAA is $268.

 

[COHgirl]

It's related to geography more than most other factors, I think.
My $2M umbrella from USAA is $268.

I'm in Kansas.

 

[ElizabethT]

Yes. With gardeners, painters, tree trimmers, housecleaners, etc., on site on a regular basis, it seems prudent.

We have it, 2 mil worth. It costs us around $800 which is not so cheap but still worth it to us.

This seems very high. We pay a bit less than that for a 5M policy.

 

[Buckeye]

It's related to geography more than most other factors, I think.
My $2M umbrella from USAA is $268.

I think it's related to geography in that there is lots of space between cars in Kansas!

 

[niven]

$1M umbrella coverage here for $155/year.

 

[unclemick]

The Common Wisdom here is very common, probably universal, and very, very wise. Get it.

Also a yes. I didn't get there til at least ten years into ER

heh heh heh - I keep mum relative wise but it is my little ego thing since I was so cheap early and let time in the Market do it's thing. Also Google your state law depending on where you live.

 

[meierlde]

It's related to geography more than most other factors, I think.
My $2M umbrella from USAA is $268.

Of course it starts with the exposure including number of cars and number of drivers and number of locations insured. Then you add driving records as well.

 

[aza455]

I have been told by my umbrella insurance carrier that a $1M umbrella insurance policy, coupled with an already-existing auto insurance policy with a $300,000 liability limit, will afford $1,300,000 liability coverage.

Is this common?

 

[Corporateburnout]

I have been told by my umbrella insurance carrier that a $1M umbrella insurance policy, coupled with an already-existing auto insurance policy with a $300,000 liability limit, will afford $1,300,000 liability coverage.

Is this common?

Yes. The umbrella policy will supplement the underlying auto/home liability coverage.

 

[athena53]

That's how they all work. Umbrella coverage is "stacked" above the underlying coverages in your Auto and Homeowners policy. It's one reason you need to be careful when looking at costs from others' posts. A $1 million policy on top of $300,000 limits will cost more than a $1 million policy on top of $500k limits because there are greater potential losses in the layer from $300,000 to $1.3 million than the layer from $500,000 to $1.5
million. Of course, if you've got $500,000 limits on your primary policy you're paying more than the buyer with $300,000 limits.

 

[Buckeye]

My USAA/RLI policy never asks about a pool. I thought my rate would increase when we moved into a home with a pool but it didn't. Question related only to number of dwellings owned/rented, watercraft, and many questions related to driving/drivers (age, record).

I bought our policy after sitting on a mock jury for an accident where one person hit another who had properly stopped for a school bus. Someone just not paying attention for a second (before texting really took off) and crash! The person who go hit was rotated and bending (like reaching into the glove box) and had neck and back injuries from the collision. The $$'s for possible lifetime care/therapy was going to be large. I started the process to purchase an Umbrella policy immediately after the mock jury!

 

[coveredbridge]

Just got a quote from my carrier for $1 mil umbrella, $439/yr. That's with 6 autos and 5 drivers (3 youthful drivers). Current liability limits on auto 250k/500k, home 500k. Hoping 2 of the youthful drivers will obtain their own coverage by end of 2017 and premium will go down. I look at it as 0.0439% per year to protect $1 mil of my assets. Seems reasonable to me.

 

[Buckeye]

Yes, well worth it with all those drivers. Especially with 3 that are young. Tons of risk, great price!

Sent from my SGH-M919 using Tapatalk

 

[mamadogmamacat]

$231 for $2mil think it was about $68 for what was then a $1mil policy 25 yrs ago so rather modest inflation compared to most things hopefully that will continue to be the case. well worth it as my ins co (auto/home/umbrella all with same) was quite helpful 17 yrs ago when I was at first deemed at fault in an auto accident but, with their help and encouragement, was able to bring enough evidence to court to have that reversed not sure the agent would have been as well motivated if I did not have the umbrella

 

[RunningBum]

The real question we should be asking is if these policies will actually protect you. It sounds like you need to be maxed on every other liability policy (and I don't know that we are). My experience with insurance companies is they try very hard not to pay out.

It could be we are paying for peace of mind that we really should not have. But as long as we *think* it protects us, there is some value in the peace of mind even if we are not really protected. But then you should not have read this post as it may have destroyed that value. Sorry.

In this case, the insurance company is working for you in trying not to pay out, rather than against you. You and they have a mutual interest in not paying the lawsuit, so they are working hard with you. Harder, really, since they pay first.

 

[JoeWras]

In this case, the insurance company is working for you in trying not to pay out, rather than against you. You and they have a mutual interest in not paying the lawsuit, so they are working hard with you. Harder, really, since they pay first.

So this theory that insurance companies find an exception for everything is running around here at MegaCorp, and one guy claims all umbrella insurance is bunk since they'll find a way out.

Yet a good friend whose daughter caused a fatal accident had his $1M umbrella pay. Yeah, it was painful. Insurance went to court to not pay, but they represented him, he was never in court. They didn't find any exceptions.

This whole thing confuses me. You know, I did something stupid which caused a lawsuit. The theory here is "You are stupid, so insurance won't pay." But wait, isn't that what accidents are?

Now, if you murder someone or drive drunk, you are felonious. That stupidity is clearly excepted.

Confused...