We added a $1M umbrella a couple years ago, I can't remember the cost but it was negligible in the grand scheme of things. All our policies are through SF: home, 4 autos (one of which is now Hagerty Classic), business, and umbrella. Being as my wife runs a grooming salon out of our home (in a completely separated part of the house), it makes sense to have as much coverage as possible.
‘Umbrella Insurance’ policy
- Thread starter pbm
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As someone who didn't have one, had some whacked out substitute mail carrier destroy our van, then get sued for over 200K, I wouldn't be without one ever again (even though we ultimately won 7 years later.)
I am with Erie and pay $189/year for 1M.
I'm not very familiar with the NY market, but I'd say it couldn't hurt to shop it.
However, I'd certainly keep it, especially in this day and age, especially if you couldn't afford to lose 1M$'s.
It's like saying the cost tracked with inflation, but the policy coverage itself did not. You can't peg one for inflation and not the other unless something else changed.
So was it the insurer's overhead that went 2.5x in 15 years or the liability risk?
Both. Cost of reconstruction for dwellings. Cost of automobiles now vs then.
I have a $5M umbrella policy. It applies to our home and vehicles. I don't think $1M is enough.
My philosophy is that insurance is to cover potential losses you would be uncomfortable paying. Things like getting sued for a few million $ because someone tripped on your walkway and is now a quad, or stepped in front of your car while you were distracted and a sympathetic jury awarded them the moon. Or your house burning down after an earthquake.
Insurance (that is, an extended warranty) is not required for a $49 toaster.
My philosophy is that insurance is to cover potential losses you would be uncomfortable paying. Things like getting sued for a few million $ because someone tripped on your walkway and is now a quad, or stepped in front of your car while you were distracted and a sympathetic jury awarded them the moon. Or your house burning down after an earthquake.
Insurance (that is, an extended warranty) is not required for a $49 toaster.
Have umbrella on the cars and house 1 m but considering raising it at least to 3-5 m. Tractor trailer could have whos what it's load is. Property has 60 acres 52 woods with big oak trees. County road that runs next to it 1/4 mile. Tree could fall on a car or truck or even though it's posted hunter or kids could get hurt or worse.
Looks like I spoke too soon. Today I got my umbrella renewal notice, and the new premium is going from $447 to $626 for the same $1M coverage. So I'm getting pimped because I have an extra home to insure until I sell it in the spring. Insurance companies really do suck.
One guy I know owned a hundred or so cars and recreational type “stuff “I don’t even own an umbrella, why would I need that insurance?
Happy new year
He didn’t have any insurance but an umbrella for everything, said only suckers have individual policies for each car, house, etc.
If you own a house in California it's worth 1 million. That's why. Happy New Year!I don’t even own an umbrella, why would I need that insurance?
Happy new year
Erie insurance has been mentioned here and other places. Their premiums are ultra low and unheard when compared to others.
Their underwriting requirements have to be interesting and selective.
Doesn't matter. Umbrella is for liability. Homeowners covers your dwelling, auto your auto. We're talking about umbrella which is a liability policy above and beyond amounts stated on your underlying individual policies. I guess it matters if you caused so much property/medical damage that your umbrella had to kick in beyond your auto policy limits, indicating that your auto coverage was insufficient in the first place.
My point is that inflation impacts the coverage amount AND the premium. So rising premium vs coverage tells you something. Notably that the insured risk (the probability of claim or the anticipated amount of claim vs premium used) has increased.
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I share the same sentiment but I'm pretty confident that even with only a 1M policy, the underwriter would show up with lawyers. As such, you're not only covering your exposure but you're getting good legal representation to guard you (above the policy amount) from lawsuits that are less than deserved.
Any umbrellas I've ever had were extension policies, and required individual liability coverages first...with the same company.
Erie has rules. Certain breeds of dogs I can't own, but they've never been to my house to tell me which trees need to go, critique the roof, etc. They also have it in their bylaws that they only spend a certain amount on advertising, limit their annual profits, etc.
My Erie rep is also the best human I've ever had for an insurance salesman.
I had (caused) a significant auto accident last year. Fortunately, liabilities to external parties were small. (Mostly my own vehicles and significant cleanup cost, aside from medical to my own family which I covered.) I think my $1M Erie umbrella increased to $180 a year for the family. I should likely consider increasing it now that the family and assets have grown.
Most umbrellas make up the REMAINDEER of a claim. If your auto policy liability is lets' say $500,000-and a claim is $600,000 - your umbrella kicks in the additional $100,000.
So-yes you are correct.
Not a lot of policy holders know exactly how it works.
They are very selective about what, who, and where they write.
The result of that conservative approach is very low rates.
In 33 years, I have only been able to beat them once.
That was for a total of $60/year auto/home combined on an initial quote from Liberty Mutual through my college alumni association.
Since they put me on hold for over 15 minutes to get that rate (what they quoted me initially was much higher,) + their reputation at the time for retribution upon renewals, I decided not to avail myself of their offer for the puny savings.
During the 33 years, I have shopped both policies every two years.
The last time that I got a bid from a State Farm agent, he actually admitted to me that he carried his personal policies through Erie.
I've been very happy, so I stay put.
Liberty Mutual has rates for new customers that are lower. This is the case with many insurance companies. And yes-and the end of the policy term your rates will go out-they all do it.
I had Liberty Mutual for a couple of years. Had a basement flood. They paid everything-without question. It was the easiest claim process I have ever dealt with.
They took the defective toilet part that caused the flood-and said they were already in the process of suing the company that manufactured them. They said if they were successful I would get my deductible back. I haven't heard anything on this.
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