aleabo
Recycles dryer sheets
- Joined
- Jan 16, 2012
- Messages
- 63
State Farm MN: 2M $389
Metlife, $200 (or so) 1M
State Farm MN: 2M $389
Not really. Most insurers have a limit of $2M - $3M or so, but coverage should be what you can afford and enough to cover a typical lawsuit in your area, if there is such a thing.Is there some guidance or rule of thumb on the amount of insurance to purchase? is it something close to net worth?
Homes, cars, licensed drivers, pets, pool.I'm paying over $700 with Geico for $3 million. Interested in hearing what companies are charging more reasonable rates as I don't think mine is a good deal. I understand the number of cars and homes you have can influence the premium.
I have my insurance with State Farm. To get an umbrella policy with them, you need to have home owners or renters insurance and auto insurance with them. After I sold my house and rented for a while, I was told I needed renters insurance (real cheap) to keep the umbrella.Not meaning to hijack, but as a general consideration would like to know from those who have umbrella coverage, is it standalone or is it provided by your homeowner's and/or auto insurer?
Reason for asking is that I am transitioning away from Geico, starting with auto, working on homeowner's and next step will be umbrella coverage which I do not currently have.
You can in Texas also... I think what the poster meant was that if you declined to carry that insurance, then the umbrella would also not cover it... I have read that somewhere... the umbrella is supposed to be the second line of defense, not the first...
I can see where they do not want to try and cover everything when the premiums are so low...
UM/UIM on an umbrella is a lot of coverage. If you have health care insurance the additional coverage in the umbrella would be for lost wages & pain and suffering. How does the premium compare to disability?I guess I wasn't clear. I have UM/UIM coverage on my auto policy so I could have UM/UIM coverage on my umbrella or I could decline it on the umbrella.
I have a $1M policy, I think the cost is about $180/year, but I'm not at home so cannot check.I've carried an umbrella liability for many years. I've looked at past threads and assume most who've accumulated substantial assets do as well. Anyone care to relate how it protected them in an unfortunate incident? I'm not considering abonadoning it by any means, just curious. Figured if anyone doesn't have it such stories might motivate them to learn more and get it.
I'd guess the most frequent use would be vehicle accident that involves serious long term disability. Then again, I have two Basset hounds, doubt they seriously disfigure anyone .
we have everything with one company.Not meaning to hijack, but as a general consideration would like to know from those who have umbrella coverage, is it standalone or is it provided by your homeowner's and/or auto insurer?
Reason for asking is that I am transitioning away from Geico, starting with auto, working on homeowner's and next step will be umbrella coverage which I do not currently have.
Wow, I can't agree with that. To me, the social responsibility is for those who are able to get insurance do so.One other point that needs to be made - not all your passenges have health insurance so having the right kind of insurance is also a social responsibility.
That's how I based mine...but there's nothing that says you have to cover all your NW. Some people are comfortable covering 80% of it for example. You can do that via a higher deductible, or a lower coverage amount.Is there some guidance or rule of thumb on the amount of insurance to purchase? is it something close to net worth?
Ours is through the same company as our auto coverage and HO. I don't think it has to be this way, but you get the "multiple policy" discount...so it often works best that way.Not meaning to hijack, but as a general consideration would like to know from those who have umbrella coverage, is it standalone or is it provided by your homeowner's and/or auto insurer?
Reason for asking is that I am transitioning away from Geico, starting with auto, working on homeowner's and next step will be umbrella coverage which I do not currently have.
Same here. We had to go to a base 500K liability on homeowners and 300/500 on auto. But the good news is that the umbrella limits are, as I understand it, *above and beyond* the base coverage. So in my case, a $1M umbrella policy on top of a $500K homeowners policy provides $1.5M of protection as far as I can tell.One watch-out. When I bought mine, it was required that I increase the coverages on my auto for "per occurrence" from the state minimums to a much higher number.
One watch-out. When I bought mine, it was required that I increase the coverages on my auto for "per occurrence" from the state minimums to a much higher number. Again, I don't have the exact numbers, but let's say liability coverage in Indiana is $150k minimum...they required that I have $300k. This caused my car insurance to go up...so the cost is not really the $180/year...but $180 plus the increase in the auto coverage...which I think was another $200/year.
Is there some guidance or rule of thumb on the amount of insurance to purchase? is it something close to net worth?
How do assets held in trust affect the calculation of assets at risk? I understood the trust cannot be sued, so not sure how to calculate size of umbrella to insure since essentially all my assets are in trust.
How do assets held in trust affect the calculation of assets at risk? I understood the trust cannot be sued, so not sure how to calculate size of umbrella to insure since essentially all my assets are in trust.
Related to increasing your coverage, please check my logic on umbrella policies. I am unable to make the connection between 'how much assets I have' and 'how much coverage I should have'. Example:
Say you have $1M 'protected' assets, $1M 'other' assets. I keep hearing that the 'conventional wisdom' says you should have a $1M umbrella policy.
But, if you get sued for $2M or more, the insurance covers $1M, and they take your unprotected $1M. So it seems to me, the amount of coverage you want is dictated more by how much you think you might get sued for, rather than how much you have to protect - right? In the above case, a $2M lawsuit with a $1M umbrella; your unprotected assets are wiped out, whether they were $1.00 or $1M. So what good was the insurance?
So if you need an umbrella equal to the amount you might get sued for to protect yourself (how can you predict that?) - it seems to be unrelated to how much assets you have. In fact, it almost seems more important to have a lot of coverage if you have smaller assets. Don't you risk an increased chance of losing it all in a suit? In the above example, if I had $3M unprotected assets, and got sued for the $2M, I'd still have $2M left (ins covered $1M I paid $1M), but if I have $500K in unprotected assets - I lose it all.
I use personalumbrella.com for the umbrella coverage. We have normal liability coverage with different companies for auto, RV, home, and boat, as it was cheaper that way. I get new quotes every other year on liability coverage and change if I find equiv coverage for less. Use a broker.
And it may be obvious to many, but it's worth repeating anyway -- if you are potentially liable for something, NEVER make it known that you have an umbrella or the sharks will smell blood in the water knowing there's a chance you're good for $1 million or more.