Umbrella Policy - To Cancel or not?

[Dawg52]

Just wait until property insurance renews... not good news.


https://amp.insurancejournal.com/ne...u1pk3dCrT0fsJ3p7Lz8KTJ7OHMq98NSIB-TETlM2BBy20

I live in central MS and mine went up 20%. Inflation on materials way up and claims in the south in from hurricanes/hail was the reasoning I got. Will shop around soon.

 

[Sunset]

This is also part of my overall question. We share a single car. I work from home and we rarely go anywhere or have folks over. If I raise my car insurance coverage to $1 Million, would that not be essentially the same as the coverage on the umbrella policy?

The nice thing about the umbrella is it covers more than lawsuits surrounding the car.

If auto insurance increase costs close to what adding umbrella costs, I'd pick the umbrella, in case someone sued me for running into them with a shopping cart in the grocery store.

In the end, it's all risk management. I feel I'm unlikely to get sued as I'm careful, and don't have kids living at home.

It's like fire insurance, I'm careful at home, have never had a house fire, and probably never will.

I pay ~$500 a year for 2 million coverage.

Should I ever have a house fire or get sued, I'll be pretty happy I wasted my money for years paying the insurance.
If it never happens, at least I sleep easier no worrying what I'll do if it does happen.

 

[FlaMariner]

So just looked ours up....

GEICO $3 million $586 (got 2nd home and rental property)

North Florida

 

[Car-Guy]

1m is plenty coverage for an umbrella policy, unless you are sued for 2m....

 

[OldShooter]

1m is plenty coverage for an umbrella policy, unless you are sued for 2m....

I had an interesting conversation with Jim Lauerman when he was president of Avemco, a major aviation insuror. At that time, $1M was the most they would write on private planes.

In his entire career, he said, he had never seen an award that exceeded the insurance amount. Juries, he said, seemed to think that the insurance company was fair game and they would award that amount, but they didn't seem to like going after personal assets above it.

Not sure what planning value that anecdote has, but I found it interesting.

 

[Car-Guy]

^^^^^


I think a $1m UP is enough for most folks even if they have several million in personal assets. From my POV, I look at it as much as a legal retainer as I do a liability insurance policy.

 

[Sunset]

^^^^^


I think a $1m UP is enough for most folks even if they have several million in personal assets. From my POV, I look at it as much as a legal retainer as I do a liability insurance policy.

Considering a trial lawyer will easily cost $300/hr , even if a person successfully defended against a lawsuit, the end cost would be a huge amount.
I'd rather the insurance company pay it.

 

[Finance Dave]

That sounds funny to me. I'd shop around. Not sure what my price is for piece of mind the umbrella gives me but I like having it in place.

+1 shop it. Ours has stayed fairly steady, goes up about 3% each year...no big jumps. We increased it from $1M to $2M about 10 years ago and it went up 80% versus doubling.

 

[teej1985]

I wouldn't cancel Umbrella, but I would definitely switch to a more competitive insurer.

 

[richardf]

Shop around

Our umbrella policy went up again. We are in Florida. It was about $200 for many years, which was a no-brainer for $1M coverage, but then it went to $450 in 2020, and now it will be $750 in 2022! No claims, same coverage. And we only have one car and nothing else. Absolutely insane.

They always regurgitate the same excuse about the state raising this and that, and the fraud, etc. But that is nothing new in FL, and I doubt any of that can justify a rate that more than tripled in less than 14 months.

I am seriously debating increasing the coverages on our auto and home policies to 1M each, and simply cancelling the umbrella altogether. We would loose the personal coverage, but we never really have anybody over at our place (Covid) and if we do, it would be family. I would like to think they would not want to sue us if they slip and fall inside our home... Raising the coverage on our existing auto policy would only cost an extra $100/year. Better than $700+/year! What else am I missing here? Anybody else debating the same?

That seems unrealistically high. Mine in Ohio is $280. I don’t know the answer, a lot of my friends don’t have an umbrella assuming auto and house will cover them?

 

[Kgillen107]

Our umbrella policy went up again. We are in Florida. It was about $200 for many years, which was a no-brainer for $1M coverage, but then it went to $450 in 2020, and now it will be $750 in 2022! No claims, same coverage. And we only have one car and nothing else. Absolutely insane.

They always regurgitate the same excuse about the state raising this and that, and the fraud, etc. But that is nothing new in FL, and I doubt any of that can justify a rate that more than tripled in less than 14 months.

I am seriously debating increasing the coverages on our auto and home policies to 1M each, and simply cancelling the umbrella altogether. We would loose the personal coverage, but we never really have anybody over at our place (Covid) and if we do, it would be family. I would like to think they would not want to sue us if they slip and fall inside our home... Raising the coverage on our existing auto policy would only cost an extra $100/year. Better than $700+/year! What else am I missing here? Anybody else debating the same?

hello! would you recommend your agent please!? looking for a new one...i'm in s. florida. Thanks!!

 

[template]

My $1 million umbrella policy from State Farm will cost $234 next year. Just got the bill and I am in Illinois.

 

[Karloff]

Evidently, South FL is quickly becoming the new California.

 

[RetiredHappy]

$234 for $2M here in NV.

 

[simple girl]

We are in southwest FL. I experienced sticker shock as well last year at our umbrella renewal time (and the year before that, too). For a $2M policy, it jumped from $299/yr in 2019 by another $150 to $449/yr in 2020. That was with GEICO.

We have an agent who is awesome. He obtained additional quotes and we had to switch auto to get the best savings oveall. Reduced our umbrella by $78 to $421 and our auto by $50, for comparable coverage.

Our agent saves me so much time in getting comparison quotes - highly recommend using one. I used to be total DIY until I found him. Florida really has taught me that I need help. It's ridic here!

Seeing how yours jumped this year...I shudder to open my bill for 2021...oh boy.

 

[FLSUnFIRE]

$2M renewed SWFL at $299 in Oct, no increase from prior year. Keeping my fingers crossed for next year.

 

[Markola]

Made me look. We pay Liberty Mutual $551/year for $2M in Minnesota. No significant increases in recent years.

 

[street]

I might need more than 1M umbrella policy, but I also think a person can be insurance poor also. Insurance of any type of shape or form IMO is a gamble but necessary.

I pay 175$ for a year for one home, two outfits and ranch land only. I don't have any buildings or personal property insured at the ranch just land.

When I downsized the number of vehicles the cost of umbrella policy went down big time.

 

[Stwicky]

In PA I just purchased $2mm umbrella for $277/year.

 

[steelyman]

My current $1 million umbrella policy is $191/yr (NC).

 

[MJ]

$1,875 for 3M, central FL, State Farm

We also have State farm 3M and pay $463 in Central Georgia and since 2018 they have only raised the rate every other year so far.

 

[halivingston]

@ShockWaveRider and others, why is NE Florida cheaper than SW or SE Florida?

I thought NE Florida is experiencing a once in a generation boom ...

 

[prototype]

Just paid $238 to renew $1M RLI policy in SE NC. House plus 2 cars with 2 drivers.