Big jump in Umbrella Insurance premium

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gavinsiu
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Big jump in Umbrella Insurance premium

Post by gavinsiu »

I notice that my mom's umbrella insurance jump from $346 to $467. Is anyone else having such a large jump in their umbrella insurance? She lives in Northern CA and the vendor is RLI.

Note that I did not have a similar jump in my umbrella.
JBTX
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Re: Big jump in Umbrella Insurance premium

Post by JBTX »

There are other anecdotes of umbrella increases, and given increases in auto and home all else equal one would expect increases in umbrella. But it’s impossible to know what the specific drivers are in your mom’s case. Best thing to do is call insurer and ask.
rossington
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Re: Big jump in Umbrella Insurance premium

Post by rossington »

Hello gavinsiu,
It's pervasive across the country. Yours is probably coming.
And it's almost impossible to get an apples to apples comparison unless you do extensive research or have the time to contact brokers or agents.
Even if you can find a cheaper premium for the same coverage it doesn't last too many years if at all.
So in the end we have a tendency to accept it and pay it.
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.
meebers
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Re: Big jump in Umbrella Insurance premium

Post by meebers »

Here are my options for my current renewal. Few short years ago, was just less than $200 :?
1 mil = $703, 2Mil = $1245, 3 Mil = $1651 and 5 Mil = $2160
sport
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Re: Big jump in Umbrella Insurance premium

Post by sport »

If you have all your policies with one company, there can be substantial multi-line discounts. This is sometimes called "bundling".
Topic Author
gavinsiu
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Re: Big jump in Umbrella Insurance premium

Post by gavinsiu »

sport wrote: Sun Jun 09, 2024 7:11 pm If you have all your policies with one company, there can be substantial multi-line discounts. This is sometimes called "bundling".
Yes, this seems complicated in CA. A few years back, my mom had a auto/renter/umbrella policy with Farmer. One year, they hiked my mom's premium big time and she was livid. She demanded that I find her a new provider. I eventually comparsion shop and got her Geico, but Geico said they can't sell her renter insurance because she lives in an hazardous area (I am thinking forest fire). They also said they don't sell umbrella and partner with RLI. There would be some sort of bundle discount.

I suspect insurance rate in CA is rising faster than in IL.
Marylander1
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Re: Big jump in Umbrella Insurance premium

Post by Marylander1 »

gavinsiu wrote: Sun Jun 09, 2024 6:41 pm I notice that my mom's umbrella insurance jump from $346 to $467. Is anyone else having such a large jump in their umbrella insurance?
We received our annual notice from Travelers today: our umbrella premium is rising 13%. While less than the increase you noted, this is the largest increase we've ever had on this policy for consistent coverage.
bombcar
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Re: Big jump in Umbrella Insurance premium

Post by bombcar »

I wonder if some companies are raising umbrella because they’re raised the others as far as regulators will allow them.
Alan S.
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Re: Big jump in Umbrella Insurance premium

Post by Alan S. »

My American Family 1mm Umbrella went from 205 to 480 last fall. How's that for a % increase?

They have Auto and HO with no losses, so this was evidently a blanket increase for everyone in AZ.
Big Dog
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Re: Big jump in Umbrella Insurance premium

Post by Big Dog »

Have a $2m policy with USAA in SoCal and my increase effective Aug 1 is similar to OP. (just a few dollars more, nearly a 50% increase)
RetiredAL
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Re: Big jump in Umbrella Insurance premium

Post by RetiredAL »

I just renewed my CSAA $3M Umbrella policy for $480, and increase of $20 over the previous year. 2 seniors, 2 cars, 2 homes.
Gnirk
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Re: Big jump in Umbrella Insurance premium

Post by Gnirk »

Our umbrella policy increased by more than 50% this year. 2 seniors, 2 homes, and 3 cars. Home and auto policies also had a big jump. We insure through Costco. Maybe because DH turned 85 this year, and I will be 80? When we asked why, the insurance company couldn’t give us a reason for such large increases, other than “premiums are increasing”.
random_walker_77
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Re: Big jump in Umbrella Insurance premium

Post by random_walker_77 »

Alan S. wrote: Sun Jun 09, 2024 10:34 pm My American Family 1mm Umbrella went from 205 to 480 last fall. How's that for a % increase?

They have Auto and HO with no losses, so this was evidently a blanket increase for everyone in AZ.
That's their attempt to fire you as a customer. It probably isn't personal and they may be trying to reduce their exposure to AZ.

Take the hint and shop it around
mrc
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Re: Big jump in Umbrella Insurance premium

Post by mrc »

My umbrella premium is 12% lower this year, however, auto up 15% and home up a whopping 31%. Overall an 18% increase in total premiums. All with Safeco.
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jebmke
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Re: Big jump in Umbrella Insurance premium

Post by jebmke »

Marylander1 wrote: Sun Jun 09, 2024 9:08 pm
gavinsiu wrote: Sun Jun 09, 2024 6:41 pm I notice that my mom's umbrella insurance jump from $346 to $467. Is anyone else having such a large jump in their umbrella insurance?
We received our annual notice from Travelers today: our umbrella premium is rising 13%. While less than the increase you noted, this is the largest increase we've ever had on this policy for consistent coverage.
Mine did as well (USAA). It is bundled with HO so when I first saw the bill, I broke out the umbrella to learn that the HO increase was quite moderate.
When you discover that you are riding a dead horse, the best strategy is to dismount.
Topic Author
gavinsiu
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Re: Big jump in Umbrella Insurance premium

Post by gavinsiu »

Thanks for the response, I wanted to know if this is just happeening to everyone or just RLI customers in CA.
FeralCat
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Re: Big jump in Umbrella Insurance premium

Post by FeralCat »

It didn't change for me. $150 for $1M at SF. It has been the same amount for a long time now.
exodusNH
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Re: Big jump in Umbrella Insurance premium

Post by exodusNH »

random_walker_77 wrote: Mon Jun 10, 2024 3:56 am
Alan S. wrote: Sun Jun 09, 2024 10:34 pm My American Family 1mm Umbrella went from 205 to 480 last fall. How's that for a % increase?

They have Auto and HO with no losses, so this was evidently a blanket increase for everyone in AZ.
That's their attempt to fire you as a customer. It probably isn't personal and they may be trying to reduce their exposure to AZ.

Take the hint and shop it around
That could be part of it.

My friend is a State Farm agent. While premiums are regulated by the state, they simply rejigger their risk models to assign you to more expensive pools.

They even adjust risk based on previous insurer. Geico and Progressive customers are most likely price shoppers who won't stay around longer than 18 months and get dinged. Liberty Mutual customers are loyal and get a better risk class since once you have them, they'll stay with you for 30 years.

He recently had to quote a long-time customer $450/mo for auto insurance. He felt bad about it and told them to go check with Progressive and a few others. The customer came back and said Progressive quotes $440/mo. He stated with my friend.

Insurance pricing is always backward looking. The hikes were seeing now are a result of the last two years plus a worsening of risk in general. (People are driving worse. Fires and other natural disasters. CNN just had an article where they stated that the US has already had 11 disasters that have exceeded $1 billion each this year -- totalling $25B already. They're expecting to run out of budget in July.)
NYCaviator
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Re: Big jump in Umbrella Insurance premium

Post by NYCaviator »

random_walker_77 wrote: Mon Jun 10, 2024 3:56 am
Alan S. wrote: Sun Jun 09, 2024 10:34 pm My American Family 1mm Umbrella went from 205 to 480 last fall. How's that for a % increase?

They have Auto and HO with no losses, so this was evidently a blanket increase for everyone in AZ.
That's their attempt to fire you as a customer. It probably isn't personal and they may be trying to reduce their exposure to AZ.

Take the hint and shop it around
You could say the same thing about nearly every insurance company these days. They've all raised their rates significantly. The risk is becoming greater and greater for them with all of the car crashes and natural disasters. Combine that with labor shortages, material prices, etc. and you have the perfect storm.
Alan S.
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Re: Big jump in Umbrella Insurance premium

Post by Alan S. »

random_walker_77 wrote: Mon Jun 10, 2024 3:56 am
Alan S. wrote: Sun Jun 09, 2024 10:34 pm My American Family 1mm Umbrella went from 205 to 480 last fall. How's that for a % increase?

They have Auto and HO with no losses, so this was evidently a blanket increase for everyone in AZ.
That's their attempt to fire you as a customer. It probably isn't personal and they may be trying to reduce their exposure to AZ.

Take the hint and shop it around
I did, and quotes were around the same amount, including RLI.
Maybe this company should not have bothered sending out those $10 premium refund checks in 2020...... :twisted:
bogles the mind
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Re: Big jump in Umbrella Insurance premium

Post by bogles the mind »

There's the major difference. In the past shopping around usually worked but not anymore.
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