Separate Personal and Rental Property Umbrella Insurance

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Topic Author
renue74
Posts: 1655
Joined: Tue Apr 07, 2015 7:24 pm

Separate Personal and Rental Property Umbrella Insurance

Post by renue74 » Mon Jul 15, 2019 4:41 pm

I complained here about my umbrella policy insurance going up $1000 after my 16 year old got his license and having 10 rentals.

I was in my Statefarm office today going through some coverage on a rental house and they suggested I separate out my personal and rental property umbrella coverage....which I didn't know was even possible. $1M coverage for up to 10 properties was only $250. They are getting me pricing on extra coverage.

Just wanted to share...if you have rentals, you may be better off splitting them from your personal coverage.

I did ask if I was ever sued by a tenant that could they sue my LLC and personally...and how would umbrella coverage work then. The answer I got was..."if you're sued Statefarm would most likely settle out of court." Which really didn't answer my question.

I don't know if there is really anything actionable here...I just wanted to share that one could have personal Umbrella and business umbrella for rental property.

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ResearchMed
Posts: 9066
Joined: Fri Dec 26, 2008 11:25 pm

Re: Separate Personal and Rental Property Umbrella Insurance

Post by ResearchMed » Mon Jul 15, 2019 5:59 pm

renue74 wrote:
Mon Jul 15, 2019 4:41 pm
I complained here about my umbrella policy insurance going up $1000 after my 16 year old got his license and having 10 rentals.

I was in my Statefarm office today going through some coverage on a rental house and they suggested I separate out my personal and rental property umbrella coverage....which I didn't know was even possible. $1M coverage for up to 10 properties was only $250. They are getting me pricing on extra coverage.

Just wanted to share...if you have rentals, you may be better off splitting them from your personal coverage.

I did ask if I was ever sued by a tenant that could they sue my LLC and personally...and how would umbrella coverage work then. The answer I got was..."if you're sued Statefarm would most likely settle out of court." Which really didn't answer my question.

I don't know if there is really anything actionable here...I just wanted to share that one could have personal Umbrella and business umbrella for rental property.
That's interesting.

When we had rentals, we HAD to get a business/commercial umbrella policy that was totally separate from our personal. Ditto the regular "house/liability", which was per rental property.

But we were told that our personal insurance would absolutely not cover any type of business endeavor, so I'm surprised to hear about some "choice" to split the personal and rental/business coverage.
Perhaps it varies by state? Or by insurer?

RM
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Topic Author
renue74
Posts: 1655
Joined: Tue Apr 07, 2015 7:24 pm

Re: Separate Personal and Rental Property Umbrella Insurance

Post by renue74 » Mon Jul 15, 2019 6:08 pm

ResearchMed wrote:
Mon Jul 15, 2019 5:59 pm
renue74 wrote:
Mon Jul 15, 2019 4:41 pm
I complained here about my umbrella policy insurance going up $1000 after my 16 year old got his license and having 10 rentals.

I was in my Statefarm office today going through some coverage on a rental house and they suggested I separate out my personal and rental property umbrella coverage....which I didn't know was even possible. $1M coverage for up to 10 properties was only $250. They are getting me pricing on extra coverage.

Just wanted to share...if you have rentals, you may be better off splitting them from your personal coverage.

I did ask if I was ever sued by a tenant that could they sue my LLC and personally...and how would umbrella coverage work then. The answer I got was..."if you're sued Statefarm would most likely settle out of court." Which really didn't answer my question.

I don't know if there is really anything actionable here...I just wanted to share that one could have personal Umbrella and business umbrella for rental property.
That's interesting.

When we had rentals, we HAD to get a business/commercial umbrella policy that was totally separate from our personal. Ditto the regular "house/liability", which was per rental property.

But we were told that our personal insurance would absolutely not cover any type of business endeavor, so I'm surprised to hear about some "choice" to split the personal and rental/business coverage.
Perhaps it varies by state? Or by insurer?

RM
Maybe by insurer. I have Geico currently and when I asked them about rentals, they just asked me for a list of the properties that would be covered under the policy.

boglerdude
Posts: 757
Joined: Fri Jul 10, 2015 1:28 am

Re: Separate Personal and Rental Property Umbrella Insurance

Post by boglerdude » Tue Jul 16, 2019 2:36 am

> $1M coverage for up to 10 properties was only $250

Commercial policy in the name of LLC? Sounds cheap but maybe thats not surprising since 80%+ of risk is from driving.

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