Umbrella insurance cost

[Zetorman]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

[Dopey]

You have me 2nd guessing my price, I’ll look it up later..... but I swear I was like $60/year for $1M.

So yeah, you’re a touch high.

[B. Wellington]

149.00 Added to our combined policies for 1 Million in coverage.

Couple +55

Midwest.

[Harry Livermore]

Sounds high. We pay $1200 for $5M. 3 adults (one is a college student) and 1 teen driver (who turns 18 today!!!) Coverage in in force at both rental properties as well.
It used to be $650, prior to the (now) 20-year-old getting his license.
You may want to shop it around?
Cheers

[winterfan]

We pay $220/yr for a 1M policy. No teenage drivers yet though!

[Deblog]

I had Erie my entire life until my son turned 16 and drove. Umbrella and car insurance skyrocketed. Erie at least in Ohio prices extra high with teen drivers. We went with State Farm that had a teen driver program and saved a ton of money.

[Zetorman]

Thanks for all of the replies. I will check around.

[Chris K Jones]

I think it is your teenager. I was canceled twice by USAA over the years. Each time I picked up coverage with a company called USLI (I think). The premiums were well over a thousand dollars for much more meager coverage. I still have a teenager on my insurance but have requalified for USAA and premium dropped by more than half. In my experience, it is always best to shop around for any insurance product. The insurance companies don't reward loyalty. The long term fix for you is your teenager growing older or leaving your insurance. Best wishes.

[runner3081]

$230 for 1 year at $1m. 3 people, no teen driver, though we do have a pool.

This policy is separate from home/auto (different company).

[SlowMovingInvestor]

$230 for 1 year at $1m. 3 people, no teen driver, though we do have a pool.

This policy is separate from home/auto (different company).

If you don't mind answering, which company ? Most companies seem unwilling to offer umbrella unless you have home or auto with them.

[Nowizard]

$154 for 1M with a company also holding car and house for couple with no children at home.

Tim

[Brewman]

Currently with Erie now and pay $140 for two adults in mid 50's for $1 mill. Previously when I had one daughter (21 yrs old) on the policy it was $300. $1200 seems very high? Have any of the drivers been in accidents or had tickets recently?

[Vernn]

Currently $483 for 2mil no teenager through RLI. You don't need to have your home/auto with them. https://www.rlicorp.com/personal-umbrella-policy

[FlyAF]

$450'ish for 5M for 2 adults, no kids.

[runner3081]

$230 for 1 year at $1m. 3 people, no teen driver, though we do have a pool.

This policy is separate from home/auto (different company).

If you don't mind answering, which company ? Most companies seem unwilling to offer umbrella unless you have home or auto with them.

Stillwater.

[RandomDude]

$360 a year for $2MM with Progressive two adults in our 40's one home, two cars.

[sherwink]

Mine is $605/ year for $4M. 2 adults, no children on policy.

[TruthHurts87]

$827/year $2m with Geico. 3 adults, 3 vehicles.

[ChicagoBear7]

I hate to say it, but all of these price comparisons are meaningless since Umbrella/Excess Liability policies ARE NOT STANDARDIZED! You can not tell if the prices quoted are for a Yugo-type policy or a Mercedes-type policy. This obviously impacts your premium in addition to normal rating factors such as location, teenage drivers, accident history etc.

Some umbrella policies are straight excess - they only extend the underlying automobile or homeowners liability limits with no additional coverage offered. Other umbrellas offer additional coverage options such as personal tort liability, not-for-profit board/officer coverage, coverage for ATV's, motorcycles, incidental business coverage, home offices or extending uninsured/under insured coverage for you and your passengers. Exactly what is covered in a policy changes by company. It is best to consult with an independent agent who has access to several insurers to make sure you are buying the coverage you need for your liability exposures at a competitive price.

[SlowMovingInvestor]

I hate to say it, but all of these price comparisons are meaningless since Umbrella/Excess Liability policies ARE NOT STANDARDIZED! You can not tell if the prices quoted are for a Yugo-type policy or a Mercedes-type policy. This obviously impacts your premium in addition to normal rating factors such as location, teenage drivers, accident history etc.

Some umbrella policies are straight excess - they only extend the underlying automobile or homeowners liability limits with no additional coverage offered. Other umbrellas offer additional coverage options such as personal tort liability, not-for-profit board/officer coverage, coverage for ATV's, motorcycles, incidental business coverage, home offices or extending uninsured/under insured coverage for you and your passengers. Exactly what is covered in a policy changes by company. It is best to consult with an independent agent who has access to several insurers to make sure you are buying the coverage you need for your liability exposures at a competitive price.

I would say that most diligent consumers can check what is covered and not covered by reading policy documents before, ahem, opening the umbrella.

Unless someone has specific and complex requirements maybe related to one's profession, or wants a large umbrella (> 5M maybe ?) I don't think an agent is worthwhile.

[McDougal]

$538/year for $2MM. 2 adults in Atlanta with lib mut

[erictiger12]

Pay $400 with Amica for 2 millions, one teen boy driver away in college.

[ChicagoBear7]

[I would say that most diligent consumers can check what is covered and not covered by reading policy documents before, ahem, opening the umbrella.

Unless someone has specific and complex requirements maybe related to one's profession, or wants a large umbrella (> 5M maybe ?) I don't think an agent is worthwhile.

The only problem with your suggestion is that in many states, insurers are not required to provide you with the language until AFTER the policy is issued - you as a layman can not perform any meaningful comparison until its too late. I would also suggest, most non-insurance people would not be aware of the numerous ins and outs for various coverages and how each insurer writes their own rules.

On several other threads on BH, there have been references to Jack Hungelmann the author of Insurance for Dummies. He is now retired, but was also a prolific author for various risk management entities. I would not rely upon the analysis attached since it is several years old and applies only to the Minnesota version of the policies analyzed, but it gives you an idea of just how "non-standardized" the policies can be.

https://www.irmi.com/articles/expert-co ... case-study

https://www.irmi.com/docs/default-sourc ... f?sfvrsn=4

[MedSaver]

$360 for $3MM with Geico. 2 responsible adults though.

[Oilcans]

Allstate- 5 million for $574.15 per year. Also have HO and Auto with them. No pool. Both of us retired in our 70's.
Had one lawsuit two years ago. They paid for some expensive attorneys which would have cost us a bundle.

[abuss368]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

That seems high. We have $1,000,000 with Erie for $150 a year. You have to have certain minimums on both auto and home. I am planning to increase to $2,000,000 and believe it is $220 or so.

[deltaneutral83]

If you title a car in your teenager's name does this not mitigate the issue? Why would an 18+ living away at college need to be covered?

[ChicagoBear7]

If you title a car in your teenager's name does this not mitigate the issue? Why would an 18+ living away at college need to be covered?

If you are talking about an 18+ year old who is gainfully employed on a full time basis, not a student, not living at home and not dependent upon his parents for any living expenses, the issue is obviously mitigated.

HOWEVER, if the 18+ year old is full time student, living away at college or at home, receives parental support/funding to live, is claimed as dependent on your tax return and maybe you bought or gave junior the car he now owns, you can expect that you would be dragged into any major/severe lawsuit due to junior's negligence in a car accident.

Obviously, the exposure to this liability will vary by state and is extremely fact specific, but it is not quite as cut and dry as you might think.

See the attached.

https://www.yutzmerkle.com/blog/adult-c ... liability/

[SchruteB&B]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

That seems high. We have $1,000,000 with Erie for $150 a year. You have to have certain minimums on both auto and home. I am planning to increase to $2,000,000 and believe it is $220 or so.

Do you have teen drivers, like OP?

[abuss368]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

That seems high. We have $1,000,000 with Erie for $150 a year. You have to have certain minimums on both auto and home. I am planning to increase to $2,000,000 and believe it is $220 or so.

Do you have teen drivers, like OP?

Probably next year.

[fru-gal]

Pay $400 with Amica for 2 millions, one teen boy driver away in college.

$390 AMICA, $5 mil, one person. They have my auto and homeowners.

[SchruteB&B]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

That seems high. We have $1,000,000 with Erie for $150 a year. You have to have certain minimums on both auto and home. I am planning to increase to $2,000,000 and believe it is $220 or so.

Do you have teen drivers, like OP?

Probably next year.

Our umbrella from Erie increased substantially once we had a teen driver. I would prepare yourself to pay more.

[FOGU]

I am curious why people feel the need to maintain liability limits of $5M? Is there some special activity in which you are engaged? Are you an aviator?

Seriously, why the limits? I guess $50 a month is nothing to many people considering the extra protection. Just curious on the thinking.

Thank you.

[Vihoo]

I am curious why people feel the need to maintain liability limits of $5M? Is there some special activity in which you are engaged? Are you an aviator?

Seriously, why the limits? I guess $50 a month is nothing to many people considering the extra protection. Just curious on the thinking.

Thank you.

Real estate ownership?

[abuss368]

I am currently paying $1200/yr for a $2mil umbrella policy through Erie. I was told that the high price is d/t having 4 people covered ie. 3 adults, 1 teenager. Anyone else paying this much?

That seems high. We have $1,000,000 with Erie for $150 a year. You have to have certain minimums on both auto and home. I am planning to increase to $2,000,000 and believe it is $220 or so.

Do you have teen drivers, like OP?

Probably next year.

Our umbrella from Erie increased substantially once we had a teen driver. I would prepare yourself to pay more.

I know. This thread reinforced that.

[cognovimus]

I am curious why people feel the need to maintain liability limits of $5M? Is there some special activity in which you are engaged? Are you an aviator?

Seriously, why the limits? I guess $50 a month is nothing to many people considering the extra protection. Just curious on the thinking.

Thank you.

I'd be interested in how you select this limit. I think we might need to up ours from $2M to $3M but not sure how to know if that's the correct amount.

[boglerdude]

> I am curious why people feel the need to maintain liability limits of $5M?

Fear-mongering by lawyers and insurance agents. 1M umbrella is enough unless theres a reckless driver in your household.

[mindbet]

I am curious why people feel the need to maintain liability limits of $5M? Is there some special activity in which you are engaged?

• Swimming pool owner

• Social host liability

Here's a story:
A few years back, our son asked to host a party for his summer job coworkers. We consented, imagining a dozen or so people sitting and chatting around the pool. We ended up with 40+ people and a ton of alcohol (think jello shots) — four garbage bags of empty containers the next morning.

But nothing happened. Everyone got home safely; no one drowned.

But had something happened, it would have ruined us.

[FOGU]

I am curious why people feel the need to maintain liability limits of $5M? Is there some special activity in which you are engaged?

• Swimming pool owner

• Social host liability

Here's a story:
A few years back, our son asked to host a party for his summer job coworkers. We consented, imagining a dozen or so people sitting and chatting around the pool. We ended up with 40+ people and a ton of alcohol (think jello shots) — four garbage bags of empty containers the next morning.

But nothing happened. Everyone got home safely; no one drowned.

But had something happened, it would have ruined us.

You don't say if your son's guests were underage for consumption of a ton of alcohol, jello shots and all the rest. "Summer job" indicates they were. If they were underage then indeed you as the facilitator engaged in a highly dangerous and liability-fraught activity on your premises by permitting it. If that is the wont or household custom then liability limits of $5M are probably too low.

[mindbet]

You don't say if your son's guests were underage for consumption of a ton of alcohol, jello shots and all the rest. "Summer job" indicates they were. If they were underage then indeed you as the facilitator engaged in a highly dangerous and liability-fraught activity on your premises by permitting it. If that is the wont or household custom then liability limits of $5M are probably too low.

Our son was of legal age at the time, and we believe his guests were too. They were mostly school teachers working summers at a camp for special needs adults. (But we did not check IDs)

There have been no parties of that type since, nor will there be in the future.

[Zetorman]

Our driver ages are 53, 50, 22 (full time college), 17 (highschool). I guess I will just hold out until the youngest turns 18, then shop around. $1200 house+$1200 umbrella+$2650 (3)cars makes me ill and this is with 800+ credit scores and no at-fault claims. Protection from financial devastation is yet another tax on financially responsible people.

[Arlington2019]

$ 230/year for $ 1 million coverage on the Safeco policy written for Washington state. Two 60 + year old drivers and a $ 600K house.

[jmorgans]

Paying Geico $1100 for two adults and a 19 yo au pair. I used to pay around $400 and it skyrocketed when we added the 19 yo and third car. Also NY passed a law disallowing preferential rates based on education which also did not help. I need to shop around but not optimistic.

You could start by seeing if it’s cheaper to raise the liability limit on your auto policy and lower the limit on the umbrella to achieve (mostly) the same coverage.

[Plano]

Some umbrella policies are straight excess - they only extend the underlying automobile or homeowners liability limits with no additional coverage offered. Other umbrellas offer additional coverage options such as personal tort liability, not-for-profit board/officer coverage, coverage for ATV's, motorcycles, incidental business coverage, home offices or extending uninsured/under insured coverage for you and your passengers.

UM/UIM is the single most important coverage you need under your umbrella policy. I have seen too many cases where the motorist at fault has the state minimum auto insurance coverages ($15K/$30K for bodily injury and $5K property per accident in many states including CA). Insurance gets really expensive after a DUI, so most drunk drivers can only afford the minimum. Same for younger, inexperienced drivers. Unfortunately, these drivers are the ones most likely to hit you. If the injuries are lifelong disabling, damages may well exceed your UM/UIM limits, so you'll need your own umbrella to kick in.

It does not cost much to include UM/UIM in your umbrella. Everyone should have it.

For comparison, we spend less than $500 a year for $2M covering 2 drivers, 2 dogs (rescues, not "dangerous" breeds), backyard pool, UM/UIM, no exclusion for the non-profit boards we serve on as directors, and pretty much every option offered. The only exclusion is professional malpractice, which is entirely separate.

[quantAndHold]

$350 for $2M, but it reduced the cost of our other coverage by more than $350, so the net was negative. 2 adults, with rental property.

I agree your problem is probably the young drivers.

[ncbill]

If you title a car in your teenager's name does this not mitigate the issue? Why would an 18+ living away at college need to be covered?

If they're covered under your auto policy they'd be covered under your umbrella as well.

My insurer penalizes drivers on the auto policy only for the first 3 years of driving (so for our kids age 16-19) but the umbrella adds a surcharge for anyone under 25.

[Buzzhead]

Dang. I'm paying State Farm $1700 for $3 million with 4 driver's, kids 23,20,13. I'm told it's good coverage.

[SurfCityBill]

$1M 4 adults. Two classified as "inexperienced drivers" although one of the drivers may now be considered experienced as rate went down from $647 to $461 thru Geico.

[Sandwich]

$ 3M, 1 adult, two vehicles. Quote was $ 285 for annual premium from State Farm which also provides Auto and Homeowners Insurance

[willthrill81]

When we had it, we paid about $96/year for $1 million. $1,200/year for $2 million seems absurdly expensive.

Considering that all of our investments are protected by federal and/or state law from creditors, only a portion of our home equity is exposed. As such, we no longer carry any umbrella insurance. Our homeowner's and auto liability both cover more than the portion of our 'exposed' home equity.