Umbrella Insurance: Plymouth Rock vs PURE ?

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NYCaviator
Posts: 104
Joined: Sat Apr 09, 2016 5:06 pm
Location: NYC

Re: Umbrella Insurance: Plymouth Rock vs PURE ?

Post by NYCaviator » Sat Aug 01, 2020 10:15 am

UALflyer wrote:
Mon Jul 27, 2020 10:32 am
oldfort wrote:
Mon Jul 27, 2020 10:14 am
afan wrote:
Mon Jul 27, 2020 9:45 am
Would an insurer even want their business if they are not going to pay $18,000/ year in premiums?
Probably not at the HNW insurers. In this Chubb presentation, this is how they describe their target market.
Personal Risk Services Client is the successful, family or individual with significant assets:
• Home value > $750,000 [And I assume this is the rebuild cost]
• Multiple homes
• Personal Collections
• High valued automobiles
• High Personal Excess Liability
Limits

https://myagency.networkedins.com/Forms ... tation.pdf
It all sounds much fancier than it ends up being in practice. As I mentioned above, a huge number of folks end up with HNW carriers because the rebuild cost of their primary residence ends up exceeding $1MM (that's the general threshold for HNW carriers in most states).

For what it's worth, I am currently with Chubb, do not have any exotic possessions, and my overall premiums are less than 50% of what Amica would've charged for a lot less coverage.
Do you have auto with Chubb as well?

There are quite a few higher end mass market carriers that will insure multiple homes with $1m rebuild for reasonable premiums (Amica comes to mind). A lot is dependent on where you live. If you are in an area where a particular insurer has paid a ton in losses (hurricane, fire, hail storm, wind storm, etc) then premiums will be higher for them. There are a LOT of older homes in the NE, especially coastal areas, that have at least $1m rebuild costs, and I can promise you not every home is insured by a HNW carrier.

My agent (who will write for the HNW carriers) generally won't even bother quoting Chubb/PURE/Nationwide PC because their auto and umbrella premiums have become so outrageous in my area that it wipes out any savings you see on a high value home. They will quote these carriers if you have a need for special coverages (i.e. drive a Ferrari or other $250k exotic, need a $25m umbrella, have a large, expensive art collection, or own a second home in an area where the HNW carriers are cheaper). Otherwise, the higher end mass market carriers are generally more competitive. Again, it is all location dependent, but these threads are filled with people who think they need a HNW policy and then complain about how much they pay.

Would I get an Allstate or Geico policy for a $2m beach home? Not a chance. But there are plenty of other higher end carriers (Amica, USAA, Auto Owners, etc.) that are head and shoulders above the typical TV insurance companies but not as expensive as Chubb/Pure/etc.

UALflyer
Posts: 628
Joined: Thu Jan 17, 2013 10:42 am

Re: Umbrella Insurance: Plymouth Rock vs PURE ?

Post by UALflyer » Sat Aug 01, 2020 10:34 am

NYCaviator wrote:
Sat Aug 01, 2020 10:15 am
UALflyer wrote:
Mon Jul 27, 2020 10:32 am
oldfort wrote:
Mon Jul 27, 2020 10:14 am
afan wrote:
Mon Jul 27, 2020 9:45 am
Would an insurer even want their business if they are not going to pay $18,000/ year in premiums?
Probably not at the HNW insurers. In this Chubb presentation, this is how they describe their target market.
Personal Risk Services Client is the successful, family or individual with significant assets:
• Home value > $750,000 [And I assume this is the rebuild cost]
• Multiple homes
• Personal Collections
• High valued automobiles
• High Personal Excess Liability
Limits

https://myagency.networkedins.com/Forms ... tation.pdf
It all sounds much fancier than it ends up being in practice. As I mentioned above, a huge number of folks end up with HNW carriers because the rebuild cost of their primary residence ends up exceeding $1MM (that's the general threshold for HNW carriers in most states).

For what it's worth, I am currently with Chubb, do not have any exotic possessions, and my overall premiums are less than 50% of what Amica would've charged for a lot less coverage.
Do you have auto with Chubb as well?

There are quite a few higher end mass market carriers that will insure multiple homes with $1m rebuild for reasonable premiums (Amica comes to mind). A lot is dependent on where you live. If you are in an area where a particular insurer has paid a ton in losses (hurricane, fire, hail storm, wind storm, etc) then premiums will be higher for them. There are a LOT of older homes in the NE, especially coastal areas, that have at least $1m rebuild costs, and I can promise you not every home is insured by a HNW carrier.

My agent (who will write for the HNW carriers) generally won't even bother quoting Chubb/PURE/Nationwide PC because their auto and umbrella premiums have become so outrageous in my area that it wipes out any savings you see on a high value home. They will quote these carriers if you have a need for special coverages (i.e. drive a Ferrari or other $250k exotic, need a $25m umbrella, have a large, expensive art collection, or own a second home in an area where the HNW carriers are cheaper). Otherwise, the higher end mass market carriers are generally more competitive. Again, it is all location dependent, but these threads are filled with people who think they need a HNW policy and then complain about how much they pay.

Would I get an Allstate or Geico policy for a $2m beach home? Not a chance. But there are plenty of other higher end carriers (Amica, USAA, Auto Owners, etc.) that are head and shoulders above the typical TV insurance companies but not as expensive as Chubb/Pure/etc.
Yes, I have all my policies with Chubb. As is commonly the case, the Chubb auto policy is substantially more expensive than that offered by the mass market carriers, but the savings on the HO side (the umbrella is about the same) make the overall package much cheaper than the total price from any of the mass market carriers, while offering significantly better contractual coverage and claims handling. In particular, as I mentioned upthread, my overall premiums with Chubb are less than 50% of what Amica would've charged for a lot less coverage.

Just as importantly, the contractual coverage differences are quite substantial. For instance, USAA only covers up to $10K in water and sewer backups (at least in quite a few markets), and does not give you the option of increasing it. Its claims handling is fine, but this won't do you any good when the coverage limit is only $10K, which in many situations will just barely (or not even) cover your clean-up costs, not to mention your actual restoration and replacement costs. As I've previously mentioned in other threads, about 4 years ago one of my co-workers, who at the time had USAA, had a water backup in his unfinished basement. It wasn't a sewer backup (sewer backups can be a lot more expensive to remediate) and the basement was unfinished. USAA did pay without any issues, except that their limit of coverage was USAA's standard $10,000, while his damage ended up costing him in the $23,000-$25,000 range. So, he had $13,000 - $15,000 in uninsured damage. This could've easily been avoided if he had had his policy with a carrier that offered better coverage.

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