Umbrella insurance
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Umbrella insurance
I am planning to buy umbrella insurance to cover my primary residence, a rental property, and two cars. The quote I get is $279 per million. I have a few questions:
1) Does $279 per million sound reasonable? I live in a rather expensive area of California (Silicon Valley), so that probably makes a difference too.
2) I tried to get a quote from another insurance company, but that company says that since they don't insure my house and cars, they can't do our umbrella insurance. Is that the norm?
3) For the primary residence, I currently have $1 million in liability coverage. The rental property has $500k in liability coverage, and the two cars have 500k/500k liability coverage. Those are above the minimum ($300k for the houses and 250k/500k for the cars). It seems that I should drop the liability coverage on the primary policies to the minimum allowed by the umbrella insurance. Does that make sense? Any pitfalls in doing that?
Thanks in advance for your help!
1) Does $279 per million sound reasonable? I live in a rather expensive area of California (Silicon Valley), so that probably makes a difference too.
2) I tried to get a quote from another insurance company, but that company says that since they don't insure my house and cars, they can't do our umbrella insurance. Is that the norm?
3) For the primary residence, I currently have $1 million in liability coverage. The rental property has $500k in liability coverage, and the two cars have 500k/500k liability coverage. Those are above the minimum ($300k for the houses and 250k/500k for the cars). It seems that I should drop the liability coverage on the primary policies to the minimum allowed by the umbrella insurance. Does that make sense? Any pitfalls in doing that?
Thanks in advance for your help!
- SimpleGift
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- Joined: Tue Feb 08, 2011 2:45 pm
Yes, it does seem a bit high. Here in the Pacific Northwest, we insure through SAFECO, which charges us $400 per year for a $5 million umbrella policy. I believe most companies require that you buy auto and homeowners insurance from them, before they'll sell you an umbrella policy — though there may be a few that sell it separately. And, yes, it makes good sense to coordinate all your underlying, primary policy limits with the umbrella policy minimums, as you're proposing.
This previous Boglehead thread will give you recent cost and coverage information from other Forum members:
Why does my umbrella policy cost so much?
This previous Boglehead thread will give you recent cost and coverage information from other Forum members:
Why does my umbrella policy cost so much?
Alstate underwrites my unbrella policy and I have my cars insured with them, but my home is insured elsewhere. There is no need to have basic coverage on your assets that are about the minimum amount required by the umbrella policy.
"I'm not so much concerned about the return on my money as the return of my money" - Will Rogers
Re: Umbrella insurance
Yes. I'm in Silicon Valley too and my $2 million umbrella policy through Safeco is $355/yea.chocolatemuffin wrote:I am planning to buy umbrella insurance to cover my primary residence, a rental property, and two cars. The quote I get is $279 per million. I have a few questions:
1) Does $279 per million sound reasonable? I live in a rather expensive area of California (Silicon Valley), so that probably makes a difference too.
The fact that $1M doesn't go as far in CA is part of the reason that umbrellas in CA are more expensive. If medical care and lost wages after an accident cost $500K in GA and $1M in CA, then the umbrella in CA has to pay out the extra $500K.dandan14 wrote:I don't know why the region would matter. $1M is $1M -- no matter where you live. It just doesn't go as far in CA.
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Thanks for all the replies. I got my quote from Farmers and I have my primary residence and two cars with them, but the rental is with a different company. Actually, the quote is $279 for $1 million, $474 for $2 million, and $674 for $3 million. It does seem a bit expensive comparing to the other quotes that people have shared in this and the other thread.
Hmm..., I think I may just go with them for now, and then shop all the insurance in one shot when I have more time later.
Hmm..., I think I may just go with them for now, and then shop all the insurance in one shot when I have more time later.
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Re: Umbrella insurance
im about to begin the process of purchasing an umbrella insurance plan and found this thread. .....just wanted to post on this thread in case anybody else has any info to share. thanks ahead of time.....
- HardKnocker
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Re: Umbrella insurance
$279 for $1 million could be high or it could be the right number. There are many variables that go into the quoted rate and they are not all dependent on you. Where I live in NJ that is a decent quote for $1 million. Probably because everyone here is highly litigious.
A previous poster said he pays $400 for $5 million which is a number I would never see in NJ in a million years.
Get some quotes from other companies. Most won't quote an umbrella without getting the whole package however so have them quote the whole thing.
A previous poster said he pays $400 for $5 million which is a number I would never see in NJ in a million years.
Get some quotes from other companies. Most won't quote an umbrella without getting the whole package however so have them quote the whole thing.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
Re: Umbrella insurance
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Last edited by benway on Mon Aug 01, 2022 8:03 am, edited 2 times in total.
Re: Umbrella insurance
In Virginia as well. Mine is 1m and pretty high - it really jumped when my son started driving - reason? "youthful driver - male"
around $400+. Have geico, only cars and umbrella. homeowners somewhere else.
around $400+. Have geico, only cars and umbrella. homeowners somewhere else.
- HardKnocker
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Re: Umbrella insurance
The "youthful driver" is a major factor for sure.Loon11 wrote:In Virginia as well. Mine is 1m and pretty high - it really jumped when my son started driving - reason? "youthful driver - male"
around $400+. Have geico, only cars and umbrella. homeowners somewhere else.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
Re: Umbrella insurance
Mine is $207 for 2 mil in Maryland.
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Re: Umbrella insurance
I pay about $270 for $1 Million in New York - again, it must be related to the high propensity of litigation. Heck, I live in a town where it seems every other person is an attorney.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Umbrella insurance
Also NY, $328 for 2mil in the Umbrella policy.
Just got raised to $345.
Just got raised to $345.
Last edited by Rob5TCP on Wed Mar 07, 2012 8:54 am, edited 1 time in total.
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Re: Umbrella insurance
I wish I could be paying what you were quoted. Allstate - $3m policy - $2100/yr. In NY, 6 cars 3 drivers under 23. House and cars with Allstate
Re: Umbrella insurance
You guys have NOTHING to complain about.
State farm was charging me 2200, then 2900, and then 3800 for 2mil coverage. 6 cars 3 drivers, one driver under 21. Once I rasied my basic auto coverage to 1mil liability and property damage...i got state farm to reducr back to 2800. But got so fed up with umbrella rate, that I went with personal umbrella .com I have no idea if they would pay if I had a claim, but I added 1mil of uninsured motorist and 2mil umbrella for a total of about $ 1800.
All you folks wondering if $279 for 1 or 2 million of coverage......that's a BARGAIN.
State farm was charging me 2200, then 2900, and then 3800 for 2mil coverage. 6 cars 3 drivers, one driver under 21. Once I rasied my basic auto coverage to 1mil liability and property damage...i got state farm to reducr back to 2800. But got so fed up with umbrella rate, that I went with personal umbrella .com I have no idea if they would pay if I had a claim, but I added 1mil of uninsured motorist and 2mil umbrella for a total of about $ 1800.
All you folks wondering if $279 for 1 or 2 million of coverage......that's a BARGAIN.
- FrugalInvestor
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Re: Umbrella insurance
$208 for $2 million in coverage here. Our exposure is low (no dogs or kids at home, newer home, etc.) but I don't know if or how that is factored in.
Have a plan, stay the course and simplify. Then ignore the noise!
Re: Umbrella insurance
I think the biggest factor in umbrella insurance premiums is whether you have drivers under 25 in your household, particularly male and unmarried. Our umbrella premiums almost tripled when our kids started driving, and I'm hoping for a similar reduction when they get out on their own in a couple years.
- FelixTheCat
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Re: Umbrella insurance
I live in California. I pay $372 for a 2 million dollar umbrella at State Farm.
Felix is a wonderful, wonderful cat.
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Re: Umbrella insurance
We have TWO of those dreaded "youthful" drivers and 4 cars insured. The auto insurance is obscene, but the umbrella is $288 for 1Mil. We have Nationwide.
Re: Umbrella insurance
Teen age drivers.
Dogs or other meat biting animals.
Risky profession (Surgeon, etc.,)
I am sure that there are a lot more risk factors that will impact the cost of a U Policy.
I think we have 0 risk factors and pay $117 per year for $1 Million which when coupled with the Liability levels on the car (only one) and the residence (only one) results in a total of $1.5 Million of coverage. All policies provided by USAA.
Dogs or other meat biting animals.
Risky profession (Surgeon, etc.,)
I am sure that there are a lot more risk factors that will impact the cost of a U Policy.
I think we have 0 risk factors and pay $117 per year for $1 Million which when coupled with the Liability levels on the car (only one) and the residence (only one) results in a total of $1.5 Million of coverage. All policies provided by USAA.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.
Re: Umbrella insurance
Three cars, one house, one 17 year old son driving, and the 1millon umbrella policy was $269 a year.
Electric insurance company.
Electric insurance company.
Even educators need education. And some can be hard headed to the point of needing time out.
Re: Umbrella insurance
Other factors of which I am awareOAG wrote:Teen age drivers.
Dogs or other meat biting animals.
Risky profession (Surgeon, etc.,)
I am sure that there are a lot more risk factors that will impact the cost of a U Policy.
I think we have 0 risk factors and pay $117 per year for $1 Million which when coupled with the Liability levels on the car (only one) and the residence (only one) results in a total of $1.5 Million of coverage. All policies provided by USAA.
Number of rental properties and type of rental property
Policy on allowing tenants to have pets, especially dogs
Personal driving record of primary insured under the umbrella (if you have a speeding ticket it affect your umbrella rate)
Number of boards (non profit, HOA, etc) on which you serve, especially if you are listed as an officer in the secretary of state filing
Whether or not you entertain in your home (although I think they rely upon self reporting for most of this)
Whether or not you host events in your home (fundraisers, etc.)
Whether or not the company providing the umbrella policy carries the liability for the underlying policies (auto, home, etc.)
- FrugalInvestor
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Re: Umbrella insurance
Funny thing is, I never recall any of these questions being asked in the first place nor has an update ever been requested (of course they would be able to check my driving record and know whether they write the underlying policies).Saving$ wrote:Other factors of which I am aware
Number of rental properties and type of rental property
Policy on allowing tenants to have pets, especially dogs
Personal driving record of primary insured under the umbrella (if you have a speeding ticket it affect your umbrella rate)
Number of boards (non profit, HOA, etc) on which you serve, especially if you are listed as an officer in the secretary of state filing
Whether or not you entertain in your home (although I think they rely upon self reporting for most of this)
Whether or not you host events in your home (fundraisers, etc.)
Whether or not the company providing the umbrella policy carries the liability for the underlying policies (auto, home, etc.)
Have a plan, stay the course and simplify. Then ignore the noise!
Re: Umbrella insurance
I think I've answered those questions, or similar, in original application and reissuance.FrugalInvestor wrote:Funny thing is, I never recall any of these questions being asked in the first place nor has an update ever been requested (of course they would be able to check my driving record and know whether they write the underlying policies).Saving$ wrote:Other factors of which I am aware
Number of rental properties and type of rental property
Policy on allowing tenants to have pets, especially dogs
Personal driving record of primary insured under the umbrella (if you have a speeding ticket it affect your umbrella rate)
Number of boards (non profit, HOA, etc) on which you serve, especially if you are listed as an officer in the secretary of state filing
Whether or not you entertain in your home (although I think they rely upon self reporting for most of this)
Whether or not you host events in your home (fundraisers, etc.)
Whether or not the company providing the umbrella policy carries the liability for the underlying policies (auto, home, etc.)
Arbella, Massachusetts, no teenage drivers, $340/yr for 2M. Minimum auto required for umbrella, but I think is around 300/300.
- randomwalk
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Re: Umbrella insurance
Another factor for us is our swimming pool. We pay $325/year for $2 million from USAA in Georgia. Two cars but no teenage drivers.
Re: Umbrella insurance
$540/year in San Jose for $5 million coverage. No youthful drivers in the house, currently renting but just bought a house. Will be interesting to see how that affects the premium. Got the policy via my employer (optional benefit that can be elected annually), don't recall having to answer any underwriting questions.
Re: Umbrella insurance
I am paying Safeco $536 for $4M. I have two cars and a house, which are also insured by Safeco. The liability on the house and cars is $500K, which is the deductible for the umbrella coverage. I live in the Washington DC area, which is lawsuit utopia. I priced out several companies, and selected the lowest price for the combination of coverage, house, cars, and umbrella. This is not the lowest priced umbrella coverage quoted, but the lowest price for the total coverage.
Re: Umbrella insurance
Seems the price you have been quoted is well within bounds.
I, too, remember those questions about type/size of dog, profession, etc., per risk factors.
I, too, remember those questions about type/size of dog, profession, etc., per risk factors.
The fundamental things apply as time goes by -- Herman Hupfeld
Re: Umbrella insurance
Usually limits over $1MM are cheaper than the premium for the first $1MM. Are you possibly assuming the cost quoted was divided equally among the limits?chocolatemuffin wrote:I am planning to buy umbrella insurance to cover my primary residence, a rental property, and two cars. The quote I get is $279 per million. I have a few questions:
1) Does $279 per million sound reasonable? I live in a rather expensive area of California (Silicon Valley), so that probably makes a difference too.
2) I tried to get a quote from another insurance company, but that company says that since they don't insure my house and cars, they can't do our umbrella insurance. Is that the norm?
3) For the primary residence, I currently have $1 million in liability coverage. The rental property has $500k in liability coverage, and the two cars have 500k/500k liability coverage. Those are above the minimum ($300k for the houses and 250k/500k for the cars). It seems that I should drop the liability coverage on the primary policies to the minimum allowed by the umbrella insurance. Does that make sense? Any pitfalls in doing that?
Thanks in advance for your help!
1) The premium doesn't sound extreme to me, and that's assuming you don't have risk factors you didn't mention that could influence the premium such as liability claims history, teenage drivers, a swimming pool, a large dog or family members with traffic violations.
2) Most companies prefer to write your homeowner's and auto coverage before they''ll offer an umbrella. It's preferable for you to have the coverages with the same company to minimize the possibility of controversy if a claim comes up. An umbrella written by a different company from your family auto and homeowner's could be a problem at the time of a large claim if the umbrella insurer could say you withheld some key information.
3) You might save a few dollars by reducing primary limits. but I'd personally feel better having the higher total limits.
My personal feeling is that it's more important to trust your insurer to be fair and financially stable than to have the lowest possible price.
My background was commercial umbrella liability underwriting. I'm not in sales. The above represents a personal opinion.
Good luck!
John
Many wealthy people are little more than janitors of their possessions. |
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Frank Lloyd Wright, architect (1867-1959)
Re: Umbrella insurance
I'm not concerned about umbrella insurance, if I lose my umbrella, I can just buy another one.
- AnimalCrackers
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- Location: Northern Front Range, Colorado
Re: Umbrella insurance
Colorado here.
Current umbrella policy with ANPAC: $1 million coverage; $305 premium.
Policy starting this afternoon with Amica: $2 million coverage; $218 premium.
Thanks again, Bogleheads.
Current umbrella policy with ANPAC: $1 million coverage; $305 premium.
Policy starting this afternoon with Amica: $2 million coverage; $218 premium.
Thanks again, Bogleheads.
"Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson
- HardKnocker
- Posts: 2063
- Joined: Mon Oct 06, 2008 11:55 am
- Location: New Jersey USA
Re: Umbrella insurance
Wise words indeed. Cheapest is not always best.Quasimodo wrote: My personal feeling is that it's more important to trust your insurer to be fair and financially stable than to have the lowest possible price.
My background was commercial umbrella liability underwriting. I'm not in sales. The above represents a personal opinion.
Good luck!
John
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
Re: Umbrella insurance
I need to get umbrella insurance.
Already have great disability and term life to cover my family if I kick the bucket or have a stroke etc........
Anyway, do most companies require the purchaser to also have their auto or home with them as well?
My auto is with Progressive which does not offer umbrella in my state....
thanks
xram
Already have great disability and term life to cover my family if I kick the bucket or have a stroke etc........
Anyway, do most companies require the purchaser to also have their auto or home with them as well?
My auto is with Progressive which does not offer umbrella in my state....
thanks
xram
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Re: Umbrella insurance
xram wrote:I need to get umbrella insurance.
Already have great disability and term life to cover my family if I kick the bucket or have a stroke etc........
Anyway, do most companies require the purchaser to also have their auto or home with them as well?
My auto is with Progressive which does not offer umbrella in my state....
thanks
xram
Asked my auto insurer (Mercury), and they require both auto and home with them to purchase umbrella. Renters are out of luck.
Retirement investing is a marathon.
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Re:
Hmmmm. I'm also in the Pacific Northwest, insured with Safeco, and our premium for a 1 million umbrella policy is $271/yr.Simplegift wrote:Yes, it does seem a bit high. Here in the Pacific Northwest, we insure through SAFECO, which charges us $400 per year for a $5 million umbrella policy. I believe most companies require that you buy auto and homeowners insurance from them, before they'll sell you an umbrella policy — though there may be a few that sell it separately. And, yes, it makes good sense to coordinate all your underlying, primary policy limits with the umbrella policy minimums, as you're proposing.
This previous Boglehead thread will give you recent cost and coverage information from other Forum members:
Why does my umbrella policy cost so much?
Re: Umbrella insurance
Umbrella insurance? My umbrellas are self-insured {smile}.
Victoria
Victoria
Inventor of the Bogleheads Secret Handshake |
Winner of the 2015 Boglehead Contest. |
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Re: Umbrella insurance
Sounds a bit high. I have three properties (two for me, one rental) and two cars, and a moving violation in the past three years and am paying $167 per $1 million in coverage. That said, maybe your policy includes things mine doesn't. My policy is with RLI and was less expensive than what my State Farm agent was able to get for me.
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Re: Umbrella insurance
I just bought a $1m umbrella insurance policy through Geico for $133 (in central CA). In doing so my car insurance went down $20/year, BUT I HAD to buy required minimum renter's insurance (with minimum $300K liability and I opted for only $5k replacement value contents coverage with a $500 deductible) which costs $156 a year. I own a home but am selling it, thus my homeowner's policy doesn't cover me while living in a temporary rental.
Thus umbrella + renter's - auto insurance decrease = total $269/year for a $1million umbrella policy (plus the addition auto/renter's liability coverage on those policies).
$22/month is not bad for peace of mind.
Thus umbrella + renter's - auto insurance decrease = total $269/year for a $1million umbrella policy (plus the addition auto/renter's liability coverage on those policies).
$22/month is not bad for peace of mind.
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Re: Umbrella insurance
just checked Geico, 1 milion policy in PA is now $299 a year.
- ClevrChico
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Re: Umbrella insurance
$155/year for $1MM with Amica here.
Re: Umbrella insurance
Just checked GEICO:sidneyinplanning wrote: ↑Thu Oct 05, 2017 7:57 pm just checked Geico, 1 milion policy in PA is now $299 a year.
1MM -> $150
2MM -> $250
3MM -> $360
4mm -> $480
I presume it is not just the state that matters. What matters are:
- your individual profile (e.g., do you make 1-2 claims per year on your Auto / House with them),
- zip code,
- type of house you have,
- type of car you have,
- etc
I don't carry a signature because people are easily offended.
Re: Umbrella insurance
In PA, and anywhere else for that matter, the cost will also depend on your relative risk.sidneyinplanning wrote: ↑Thu Oct 05, 2017 7:57 pm just checked Geico, 1 milion policy in PA is now $299 a year.
Re: Umbrella insurance
In California - $500 for $3mm With GEICO.
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Re: Umbrella insurance
$304 for 2M with Liberty Mutual (Silicon Valley)