Umbrella premium tripled!

[tb001]

I'm on the Board of Directors for my Homeowners Association. Our property manager told us recently that insurance agents are telling property management companies to expect large increases in premiums when policies are renewed this year.

Didn't really explain why.

Ugh, I really hope we don’t see large increases again this year. In 2019 our insurance almost doubled and then went up again last year by about 10%.

 

[Mark1]

Our State Farm $2M policy is $178. We had Geico but when my daughter's then BF had a minor accident in her car (on our policy) their umbrella division kicked us off even thought the auto division didn't raise their rates. I dropped all Geico policies and consolidated at SF.

Got my renewal this week from State Farm. It stayed at $328 for $2M in coverage. Now I see why it didnt' go up.

 

[REWahoo]

Our umbrella premiums (USAA) decreased 38% last August after we went from three vehicles to two. No change in premium when it renewed late in the year.

 

[Out of Steam]

Seems like we have to keep shopping around every year or so, as insurance companies only value prospects and not customers....

This is common. We've found that we have to change car insurance companies every 5-7 years.

Internet and cell phone companies seem to work the same way.

 

[BarbWire]

USAA told me my Dad's WWII service didn't count! He was in uniform for about a year, for special service as an electrician at an Army base. He had a minor disability that kept him out of regular service.

Ditto. My father was in WWII -- but in His Majesty's Royal Air Force. My maternal grandfather was in WWI as a US Army doughboy, gassed in the trenches in France.

USAA said Dad didn't count because he wasn't in American services; apparently Allies don't count! And Granddaddy didn't count because he was dead by the time I asked.


I've had SF (in four states) since 1994, with multiple policies: two autos, homeowners or renters, and umbrella. So far no rude surprises....

 

[Sunset]

Asked about umbrella insurance back when we bought our home in mid 90's . seemed like not worth the $$ especially on a home that was built in 1943 that we bought for 77K. worth about 140 now . Our total net worth would be well below 500K which is the starting point for which umbrella policy is recommended.

My view is that umbrella protects you from a devastating judgement and really has nothing to do with your assets.

If I had total assets of $300K and someone won a $1 million judgement against me, I'd lose a lot of my assets (maybe not my house), and then they would garnish my income for the rest of my life.

If all I had was $300K, I'd be pretty unhappy to lose it.

 

[Sunset]

If a person wants $3M in umbrella insurance and the insurance company is reasonable for $2M , but outrageous for $3M, Could a person get the $2M coverage from insurance company, and then get another $1M from another insurance company ?

 

[EA-Sports]

For those with umbrella insurance do you have to have your home and car insurance with the same company as your umbrella insurance?

 

[RetireeRobert]

I "do" have all three policies with same company. Auto/HO/Umbrella. Whether or not some company will sell umbrella policy without having also sold underlying auto/HO is up to each company. I suspect some would not. I also suspect any that would is going to charge more than if in a bundle of other policies. But that is just my suspicions. I have not shopped it that way over many many companies.

 

[Sunset]

My policies are all with 1 company, as I get discounts that way.

It must be true, because one year I switched the auto insurance to another company, and our house renewal price skyrocketed !! So I switched everything

 

[Dranoel]

We have bundled GEICO in Florida and our $1 million umbrella increased to $338/yr, up 50% from 2020.

 

[Amethyst]

We have GEICO auto and umbrella. The HO insurance company only does HO insurance.

I seriously doubt another company would sell us an "additional" $1M umbrella when we don't have other policies with them, though it's worth asking.

For those with umbrella insurance do you have to have your home and car insurance with the same company as your umbrella insurance?

 

[freedomatlast]

$2,000,000 umbrella from Erie costs $395 down from $470 a year ago. That's for 2 houses and 8 cars. I'm surprised at all the Geico policyholders here. I requote our insurance every 2 or 3 years to make sure I'm still getting a good deal and Geico is always at least double what Erie is on both auto and umbrella policies. Homeowner's insurance with Erie also decreased substantially this year. I think what keeps Erie's rates down is that they don't write policies in areas that are prone to wildfires and other natural disasters that keep occurring year after year. They also don't pay for ads on TV or any other expensive advertising.

 

[JoeWras]

They also don't pay for ads on TV or any other expensive advertising.

They do pay commissions to independent agents. But that's not a bad thing, just a different way of advertising.

Erie is good. I have friends who have liked their service. My last accident was with someone who had Erie. Determination of fault (theirs) was an easy process with them, and then they paid me a fair settlement. I'd consider them if I switch from Amica.

Right now I'm happy with Amica, including a reasonable Umbrella policy that hasn't changed price in 3 years.

 

[sengsational]

This is common. We've found that we have to change car insurance companies every 5-7 years.

Internet and cell phone companies seem to work the same way.

Consumer Reports did a study on insurance companies' pricing with new and existing customers. I don't recall specific names, but there were many recognizable names that had their hands solidly in the existing customer cookie jar, without a doubt. I'm pretty sure Amica wasn't caught penalizing their long term customers.

 

[Amethyst]

I will see what Erie and Amica say about umbrella and auto, but they are not going to quote on HO in Florida.

No major national company, that I am aware of, writes HO in Florida. Certainly not on the coast!

$2,000,000 umbrella from Erie costs $395 down from $470 a year ago. That's for 2 houses and 8 cars. I'm surprised at all the Geico policyholders here. I requote our insurance every 2 or 3 years to make sure I'm still getting a good deal and Geico is always at least double what Erie is on both auto and umbrella policies. Homeowner's insurance with Erie also decreased substantially this year. I think what keeps Erie's rates down is that they don't write policies in areas that are prone to wildfires and other natural disasters that keep occurring year after year. They also don't pay for ads on TV or any other expensive advertising.

 

[ncbill]

My view is that umbrella protects you from a devastating judgement and really has nothing to do with your assets.

If I had total assets of $300K and someone won a $1 million judgement against me, I'd lose a lot of my assets (maybe not my house), and then they would garnish my income for the rest of my life.

If all I had was $300K, I'd be pretty unhappy to lose it.

You'd lose your non-exempt assets (primarily anything in a taxable account) but you'd then go file Chapter 7 bankruptcy to discharge whatever was left of the judgment (IIRC, civil judgments are not subject to Chapter 7 income limits)

 

[Sunset]

You'd lose your non-exempt assets (primarily anything in a taxable account) but you'd then go file Chapter 7 bankruptcy to discharge whatever was left of the judgment (IIRC, civil judgments are not subject to Chapter 7 income limits)

Thanks...... Having never been sued, I thought a debt like that was permanent. Now I know why some folks drive around without any insurance.
There doesn't seem to be a risk of future earnings.

 

[teej1985]

I will see what Erie and Amica say about umbrella and auto, but they are not going to quote on HO in Florida.

No major national company, that I am aware of, writes HO in Florida. Certainly not on the coast!

There are two large national insurers that operate in Florida: USAA and Progressive. Most other recognizable names are single-state subsidiaries that are not backed by the financial resources of the parent. For example, State Farm Florida is not in a pool with State Farm Fire, and it will go bankrupt if it exceeds its reinsurance limits.

 

[Dash man]

There are two large national insurers that operate in Florida: USAA and Progressive. Most other recognizable names are single-state subsidiaries that are not backed by the financial resources of the parent. For example, State Farm Florida is not in a pool with State Farm Fire, and it will go bankrupt if it exceeds its reinsurance limits.

USAA refused twice to write an HO policy in Florida for us. They may only insure active duty homes or homes they previously insured.

 

[Amethyst]

USAA is out, are you saying Progressive writes HO in Florida?

There are two large national insurers that operate in Florida: USAA and Progressive. Most other recognizable names are single-state subsidiaries that are not backed by the financial resources of the parent. For example, State Farm Florida is not in a pool with State Farm Fire, and it will go bankrupt if it exceeds its reinsurance limits.

 

[Dash man]

USAA is out, are you saying Progressive writes HO in Florida?

We went through Synergy Insurance as a broker. We ended up with coverage from Lloyds of London insuring our Florida condo, and using a different broker at the Jersey Shore, we also ended up with Lloyds of London. These are both just the homeowners. For umbrella, USAA put us with USLI.

 

[braumeister]

My understanding is the USAA will insure you in Florida if you are already a military member and are assigned there on official orders. Otherwise they stopped years ago.

 

[teej1985]

USAA is out, are you saying Progressive writes HO in Florida?

My understanding is that they do. Though maybe it has changed in the past couple years. And maybe not necessarily every possible house in FL.

 

[oiseux]

My secondary umbrella is under $500 for $5M, placed with a secondary insurer by my agent, with the Safeco coverage limited to $2M. This is with a rental property, no pools.