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Old 07-08-2018, 08:34 AM   #81
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Originally Posted by copyright1997reloaded View Post
$3M, costs a little over $500/year.

In my humble opinion $1M is not enough. Much too easy for the insurance company to not try hard enough when their cost is 'only' $1M and then end up with a judgement well in excess of that. I want them to be willing to invest a lot of time and effort in beating the claim.

Not even sure $3M is enough...
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Originally Posted by Luvdogs View Post
We pay $951 for $2M in FL; we have four cars including our 22 yr old on our policy. We also have a rental. Ours seems higher than many.
Last month I read an article about umbrella policies and called Amica to bump up to 3M from 1M. I found out I'd been paying too much for the past year because when DD became independent with her own car and own insurance, they only addressed the auto and not umbrella. I'm disappointed in the otherwise excellent customer service that I've come to expect from Amica. But they did credit me with the lower rate for one year when DD was on her own.

One thing not mentioned in the article was retirement assets and primary residence being protected. If I'd known that, and if I learned that was the case in NC, I'm not sure I would have upped the coverage. I think it's around the $500 mark. I'll revisit next renewal, I suppose.
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Old 07-08-2018, 08:38 AM   #82
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We have a $1M policy with Amica.
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Old 07-08-2018, 08:48 AM   #83
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...

Do you maintain a policy and if not, why? .
Yes
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Old 07-08-2018, 09:55 AM   #84
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We pay $951 for $2M in FL; we have four cars including our 22 yr old on our policy. We also have a rental. Ours seems higher than many.
Yes, the above is one reason I decided our kid will not have a vehicle when they head off to university in FL this fall.

IIRC, nearly 90% of the umbrella premium is to cover excess auto liability.
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Old 07-08-2018, 10:06 AM   #85
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Yes...was $1M and we just upped it to $2M a few months ago. It was reasonable priced
under $400. No way I'm risking everything we've worked for
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Old 07-08-2018, 01:20 PM   #86
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$5mm - $435/yr
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Old 07-08-2018, 01:46 PM   #87
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1M in mi for $250. I'll revisit this in sept as our policy renews.
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How Many Here Have Umbrella Liability Coverage?
Old 07-08-2018, 02:00 PM   #88
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How Many Here Have Umbrella Liability Coverage?

Quote:
Originally Posted by copyright1997reloaded View Post
$3M, costs a little over $500/year.

In my humble opinion $1M is not enough. Much too easy for the insurance company to not try hard enough when their cost is 'only' $1M and then end up with a judgement well in excess of that. I want them to be willing to invest a lot of time and effort in beating the claim.

Not even sure $3M is enough...


Having recently obtained coverage, I found an industry website that said typically the first $1MM tier runs from $150-$300. The second $1MM tier usually runs about $75 and each $1MM tier after that runs about $50. My insurance agent confirmed those figures. As I also found out there is also a factor for the number of drivers on your auto policy. As cheap as the additional tiers are it seems like a no-brainer to have the additional coverage...
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Old 07-08-2018, 02:03 PM   #89
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As cheap as the additional tiers are it seems like a no-brainer to have the additional coverage...
The only wrinkle is that I have heard from several people that once you get above $2MM it becomes considerably more expensive and more of a hassle to get. No idea if that's a general situation or peculiar to them.
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Old 07-08-2018, 02:14 PM   #90
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The only wrinkle is that I have heard from several people that once you get above $2MM it becomes considerably more expensive and more of a hassle to get. No idea if that's a general situation or peculiar to them.
When I had umbrella liability from State Farm, they said up to $2M was automatically available, and for any additional coverage the underwriters would need to interview me and a different questionnaire was needed. I changed insurers a few years back and currently I can get up to $5M, but the price after $2M jumps considerably.
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Old 07-08-2018, 02:22 PM   #91
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$257 for $3 mil in Colorado. 2-50 somethings household.
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Old 07-09-2018, 02:23 PM   #92
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Yes, we have $1M policy
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Old 07-09-2018, 02:33 PM   #93
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Nope!

85% of assets are in uncollectable retirement plans.

My philosophy on insurance, as a BH shareholder, is that similar to Buffett, I would rather sell insurance rather than buy insurance if I can sustain the loss.

Auto insurance is rather pricey in my state, and I have multiple "older" vehicles.

-gauss
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Old 07-09-2018, 03:10 PM   #94
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Yes, $2 million. Helps me sleep at night because it covers the legal costs, and the umbrella coverage is broader than the underlying (auto, home, rental) for exposures that I hadn’t thought of. Peace of mind.
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Old 07-09-2018, 03:36 PM   #95
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Back in 2015 I researched liability judgement and jury awards in our county in a high cost of living state. Out of a total of 150 cases, the average award was 750K (inflated due to a 33M award against a gangster for wrongful death and few 5-7M medical malpractice awards). The median award was only 15K. So for most people the probability of getting hit with a judgement in the millions of dollars is very small and if these were not rare the insurance companies would have jacked up their premiums considerably. That's why a 2M policy cost $300 to $400 but for that price why not have it for a peace of mind.
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Old 07-09-2018, 03:48 PM   #96
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$2 million coverage for $257, in a HCOL area, with State Farm.

I upped it from $1 million after DH died because the inherited spousal IRA is not protected like other retirement accounts, until I assume it/roll it over, and I'm not planning to do that until much closer to 59.5.
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Old 07-09-2018, 03:55 PM   #97
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Yes, we have it @ $115 a year. We've actually used it. Those lawyers are bulldogs and the case was dismissed with prejudice. I'll be a State Farm customer for life, because they really technically could have denied coverage on this particular incident.
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Old 07-09-2018, 04:11 PM   #98
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Yes, of course. The correct amount to insure in my judgment is the sum of one’s non-exempt assets. So if you own a house titled correctly with your spouse and your financial assets are all in 401Ks and IRAs, then you might not need this insurance. All others should look into it IMHO.
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Old 07-09-2018, 04:14 PM   #99
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$5million for $904 per year. Peace of mind!
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Old 07-09-2018, 04:15 PM   #100
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Personal umbrella policies tend to be a very profitable line of business for insurance companies. In my 35 years of working for insurance companies, I only recall paying a few umbrella claims in my territory and few were for policy limits. The few I recall were just additional amounts over the top of the underlying coverage but not policy limits of the umbrella. I did see a claim where my employer declined to write an umbrella policy for customers that wanted higher limits than we cared to provide. That insured ended up with a major claim. Their grandchild drowned in their swimming pool and their adult children sued them for big $$. I don't believe the grandparents were even home, but cases like that are tough in front of a jury.



Insurance companies make money on umbrella policies by carefully underwriting them. They shy away from bad drivers, high-powered boats and other toys that are more likely to cause large lawsuits. Kids on ATV's going under barbed wire fences, falling off of golf carts, jet skis, etc. are always suspect as are trampolines and swimming pools.
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