Large Increase in Umbrella Premium

[ejman]

I just got a notice that my umbrella insurance ($1M) is increasing by 50% from $207 to $310. Anybody else experiencing these large increases? No claims or changes just one year older.

 

[KM]

In 2011, we purchased a $1M umbrella.
In 2012, it went up almost 10%.
In 2013, there was no rate increase.
Renewal is due August 2014. Sure hope it doesn't go up 50%......that will certainly prompt a phone call. (We are currently paying $180.)

 

[Buckeye]

I just got a notice that my umbrella insurance ($1M) is increasing by 50% from $207 to $310. Anybody else experiencing these large increases? No claims or changes just one year older.

Our rates were higher when there was a fender bender on our record but once it fell off, our rates were great ($212 for $1M). I had to switch companies mid-policy year to get the better rate. I won't know about next policy year for about 5 months. RLI is our provider. Check it out at RLIcorp dot com.

Be sure you shop around.

 

[REWahoo]

Mine has gone up 2% to 5% per year, and this year was no exception - an increase of 4.6%

 

[Rustward]

No increase this year.

 

[LOL!]

Increase for male teenage driver.

 

[pb4uski]

I just got a notice that my umbrella insurance ($1M) is increasing by 50% from $207 to $310. Anybody else experiencing these large increases? No claims or changes just one year older.

Suggest that you call your agent or the company and ask why.

 

[Buckeye]

Suggest that you call your agent or the company and ask why.

Maybe they have added something to your risk profile that does not belong to you. That kind of increase says "change in risk."

 

[SJ1_]

I just got a notice that my umbrella insurance ($1M) is increasing by 50% from $207 to $310. Anybody else experiencing these large increases? No claims or changes just one year older.

We have had a umbrella for the past 25-30yrs. they use to be cheap.
Ours was at $610 this yr. but with our new company it goes down to $342.

 

[BOBOT]

Ours has been $350 for 2M for a couple of years.

 

[redduck]

We just renewed our $2M umbrella policy last week. We paid $401 last year and $401 this year. Two years ago, it was also $401.

 

[Ready]

Our $5M umbrella policy is $900, but as I posted in another recent thread, Met Life recently quoted me $370 for a $5M policy. It seems to good to be true but I'm going to research it a bit further and read through the policy details to see if it is a true apples to apples comparison.

 

[ejman]

Suggest that you call your agent or the company and ask why.

I called the company (Progressive) and all I could get out of them is "nothing you did rates just went up" Time to shop around - any good suggestions for umbrella insurance companies?

 

[tulak]

No increase for us this year.

 

[Redbugdave]

No increase for the past 3 years. I would ask, also.

 

[SteveL]

Most companies who issue Umbrella policies do not carry the entire risk themselves. Instead, they have "Treaty Reinsurance" with one or more reinsurance carriers. A given company might only keep the first $500,000 or less of your $2,000,000 policy. The remainder is laid off in one or more layers to reach the agreed aggregate limit. More than one reinsurer might be involved especially in higher limits. Generally these treaties provide that over time, the re-insurer doesn't lose money. And, the treaties cover a number of years until they are renegotiated. Umbrella losses are rare, and just a few can distort results causing unwelcome swings in pricing as treaties renew and the re-insurer is made whole.

Because so few Umbrella policies are written compared to HO or Auto, it isn't an important line of business to your company. They probably don't really care if you renew or not. They have to have it available because better customers who own lots of stuff which they can insure want it available. Personal Insurance (as opposed to Business Insurance) is a tough business to be in. HO policies have been a big loser for the industry for 30 years. It is very regulated. They make most of their money on car insurance.......

 

[tuixiu]

Our 1m umbrella policy is $233 thru USAA, I don't believe it went up this year.

 

[Katsmeow]

We had a large increase in our umbrella premium and asked our independent agent to find other alternatives. They ended up placing it with our home insurer. At first, they didn't think they could as we had a higher umbrella limit than the home insurer normally writes. However, they requested underwriter approval for the higher limit and received it. Our premium was cut by over 50%! So -- shop around.

 

[braumeister]

Ours hasn't gone up in several years.

I think it's important to recognize that insurance rates for cars and homes is highly dependent on where you live, and umbrella rates are based on those rates.

 

[SkisALot]

Does the umbrella policy have to be with the same company as the HO and/or vehicle policy? If not, would having it with another company make the umbrella policy more expensive?

 

[frugalFIRE]

I think it would need to be the same co for both. I'd say they would want the coverage to be uniform between the underlying and the umbrella for underwriting purposes.

 

[Katsmeow]

Does the umbrella policy have to be with the same company as the HO and/or vehicle policy? If not, would having it with another company make the umbrella policy more expensive?

No, it does not have to be with the same carrier. Often, it is cheaper to have it with the same carrier as your home or auto. Sometimes that carrier, though, may offer only relatively low umbrella limits. But, that may not be the case so it may be worth checking in any event.

 

[Sarpy]

We recently purchased umbrella coverage for the first time. We have our homeowners and auto insurance through different companies and were able to get the umbrella coverage through a 3rd carrier. Our $1M policy was exactly $200. (The home insurance co. said we had to have auto with them before they would add umbrella.)

 

[daylatedollarshort]

We have been getting overcharged on all our insurance. Almost every time someone posts am I getting charged too much we are always paying more. We should have taken the time to price shop more often.

I ran an online rate comparison calculator the other day for car insurance and the cheapest was USAA. I'm going to get quotes from them for the homeowners and liability as well.