‘Umbrella Insurance’ policy

[pbm]

I purchased ‘umbrella’ insurance for the first time about 15 years ago for about $230 a year for a 1 million dollar policy. My latest renewal has that same $1,000,000 policy costing 3 times that ($590 annually). I’m thinking of canning it since I drive far less since retiring and that was my main concern (some ambulance chaser trying to take my house after an accident…probably with someone with no insurance which is common in NY). I have 300k/500k liability I believe so maybe I don’t need it. Thoughts?

 

[Slick3914]

I have a 3MM policy, which costs $420/year. I feel it is a good investment.

I use Erie and also have auto, homeowners and life policies with them.

 

[Snagglefoot]

Here in Canada it’s common to have the Umbrella tucked in with the house insurance. A 5 million Umbrella is fairly common but it should probablly be reviewed once you stop working. I actually know of people who don’t bother with that type of insurance in the first place.

 

[dnewton3]

I purchased ‘umbrella’ insurance for the first time about 15 years ago for about $230 a year for a 1 million dollar policy. My latest renewal has that same $1,000,000 policy costing 3 times that ($590 annually). I’m thinking of canning it since I drive far less since retiring and that was my main concern ( some ambulance chaser trying to take my house after an accident…probably with someone with no insurance which is common in NY). I have 300k/500k liability I believe so maybe I don’t need it. Thoughts?

From $230 to $590 in 15 years is actually a very fair price increase. (technically a hair over 2.5x).

I'd recommend you keep it.

 

[dogememe]

I don’t even own an umbrella, why would I need that insurance?

Happy new year

 

[alarmguy]

I purchased ‘umbrella’ insurance for the first time about 15 years ago for about $230 a year for a 1 million dollar policy. My latest renewal has that same $1,000,000 policy costing 3 times that ($590 annually). I’m thinking of canning it since I drive far less since retiring and that was my main concern ( some ambulance chaser trying to take my house after an accident…probably with someone with no insurance which is common in NY). I have 300k/500k liability I believe so maybe I don’t need it. Thoughts?

I always wondered and never bought one. Run the same 300/500 or 250/500 for all things including under insured and uninsured. My reason was I have another asset/ commercial property but that already has a million policy on liability.
1. you wont lose your house in a lawsuit and your insurance company is the lawyer.
2. most lawsuits do not go after private assets unless of course it is worth it for them. They go for the easy insurance money. No judge is going to take your life savings or your home.
So I never bought an umbrella.

Buy or not in your comfort zone.

 

[cheech279]

Shop around and you may find a better rate. My rate for the same coverage with USAA is $447 with three vehicles and multiple homes, which gives me more exposure.

 

[4wd]

I don’t even own an umbrella, why would I need that insurance?

Happy new year

I was in a big store last year when a crazy hard downpour suddenly had us trapped. Here comes an older guy with a basket full of umbrellas marked down to $5 …
Looked at his badge - yep, store manager

 

[SC Maintenance]

I have been told you carry an umbrella based on your net worth - because people can sue for anything under the sun and your homeowners or Auto may not be applicable.

I agree to shopping around, but often they don't like to do an umbrella unless you have at least one other policy - is my experience.

I pay $426.00 for $1M policy. Its been going up like yours, but I consider it payment for a decent nights sleep.

 

[Pablo]

Seems a tad high. Do umbrella policies vary by location?

In April 25 I paid $144 for $1meg (I need to up that) from Progressive

 

[Zee09]

I've never had an umbrella fail so I'm not paying for insurance

 

[Jay73]

When I was younger and owned not much of anything I used the cheapest insurance/lowest limits allowed etc... Now that I'm older and buying new cars, owning real estate, assets etc... I've stuck with the major names in insurance. I was with Progressive for a long time, then bounced to Geico for 1 year and now I've been with State Farm for a few years. The main reason for the State Farm move is because they basically gave me an unbeatable rate on homeowners so I have Auto/Homeowners through them. I didn't pick up a separate policy for umbrella but I did jack my limits on my auto policy from the old days of minimum amounts to sky high to make sure enough coverage to cover me if a serious accident did occur where I was liable and the price of some of these new cars is insanity so I prefer my limits to be high enough to take out a few brand new Tesla's and knock a few street lights down without worrying if my coverage is enough.

 

[pbm]

From $230 to $590 in 15 years is actually a very fair price increase. (technically a hair over 2.5x).

I'd recommend you keep it.

While what you say is true I also look at it that a million dollars today doesn't buy what it did 15 years ago. I think after getting input from you guys I'll shop around and try to lower my rate but keep the policy. Thanks for the good input.

Several years ago my neighbors 20 something year old pothead son (who wasn't really a bad kid just stupid IMO) said to me "If I stop short in front of a (high end) vehicle and let him hit me in the rear I can sue for 'injuries'"....I said to him..."That's fraud ...you should earn money the right way." He said something to the effect of "Why not, everybody's doing it". I'm not sure how widespread this kind of fraud is but I know it happens often enough. It's sad that those of us who worked hard and have assets have to insure ourselves against those with no/under insurance or fraudsters.

 

[Jay73]

While what you say is true I also look at it that a million dollars today doesn't buy what it did 15 years ago. I think after getting input from you BITOGers I'll shop around and try to lower my rate but keep the policy. Several years ago my neighbors pothead 20 something year old son (who wasn't really a bad kid just stupid IMO) said to me "If I stop short in front of a (high end) vehicle and let him hit me in the rear I can sue for 'injuries'"....I said to him..."That's fraud ...you should earn money the right way." He said something to the effect of "Why not, everybody is doing it". I'm not sure how widespread this kind of fraud is but I know it happens often enough. It's sad that those of us who worked hard and have assets have to insure ourselves against those with no/under insurance or fraudsters.

It definitely happens enough especially in larger cities and has increased dash cam sales as well as once ya tell them it's all on camera they drive away.

 

[shortyb]

I have been told you carry an umbrella based on your net worth - because people can sue for anything under the sun and your homeowners or Auto may not be applicable.

I've had an umbrella policy since moving to SC and being in the field I was in. Currently 3M for a little over $400. Saw too many guys and gals get ruined in frivolous cases where they get stripped of assets and SC has no fiduciary caps on lawsuits, right OR wrong. Thats what we get for letting the lawyers be politicians making the laws . I prefer to pay a little and keep my stuff.

 

[ARCOgraphite]

I purchased ‘umbrella’ insurance for the first time about 15 years ago for about $230 a year for a 1 million dollar policy. My latest renewal has that same $1,000,000 policy costing 3 times that ($590 annually). I’m thinking of canning it since I drive far less since retiring and that was my main concern (some ambulance chaser trying to take my house after an accident…probably with someone with no insurance which is common in NY). I have 300k/500k liability I believe so maybe I don’t need it. Thoughts?

I was talked into a 1M PLUP about 4 years ago by my "new" State Farm agent when my previous guy retired. I could supposedly knock down my property damage on our two cars, and the umbrella would pick that up. It was 99 bucks annually back then. Then it went up 50% druing the epidemic and this year it went up 100%. I was going to pull the plug, but I felt uncomfortable since I ain't getting any less stupid or accident prone.
I will review this before next year and likely just drop the PLUP and increase the prop damage - if that is cost effective. I dont know what the next tier is above my standard 100/300 or if they even offer more coverage. Something that covers totaling one MB S-class, that telephone pole snapping event, or, even driving through the side of that old colonial on the corner.

Guess I have to put this on my To-do list.

I didn't review this entire thread, PBM, what did you decide?

Happy NY and Cheers! - Arco

 

[xspeedy]

I purchased ‘umbrella’ insurance for the first time about 15 years ago for about $230 a year for a 1 million dollar policy. My latest renewal has that same $1,000,000 policy costing 3 times that ($590 annually). I’m thinking of canning it since I drive far less since retiring and that was my main concern (some ambulance chaser trying to take my house after an accident…probably with someone with no insurance which is common in NY). I have 300k/500k liability I believe so maybe I don’t need it. Thoughts?

Check your state laws, but your primary residence (homestead) is typically protected from tort. I want to say retirement accounts may be protected as well.

 

[Sayjac]

Recently moved to a new area and I've never seen (TV) nor heard (radio) so many ads for the ambulance chasers. It's like...... "In pain, call (insert ambulance chaser name here)!" Even the local morning traffic report sponsored by one. After seeing how Hwy17 operates, I'm giving some consideration to getting an umbrella policy.

 

[SammyChevelleTypeS3]

Seems a tad high. Do umbrella policies vary by location?

In April 25 I paid $144 for $1meg (I need to up that) from Progressive

View attachment 318095

Thanks for posting this. I been wanting to increase coverage since it appears the world has gone SUE CRAZY the last twenty years or so.
Allstate Insurance has been screwing me over with their rates for years. I have only stuck with them due to the fact they have always paid out any claims almost instantly. My oldest son is here visiting the past week and told me he has been with Progressive for nearly 25 years now and is very satisfied with them.

 

[ATex7239]

I have been told you carry an umbrella based on your net worth - because people can sue for anything under the sun and your homeowners or Auto may not be applicable.

I agree to shopping around, but often they don't like to do an umbrella unless you have at least one other policy - is my experience.

I pay $426.00 for $1M policy. It’s been going up like yours, but I consider it payment for a decent nights sleep.

Makes sense to me. Insurance is there to protect your assets which isn’t just about property. I definitely think Umbrella makes sense for anyone who is building/has assets. A couple hundred annually is nothing when we are talking about protecting your entire life’s work.