what do others pay for umbrella insurance, and is it needed?

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cadreamer2015
Posts: 998
Joined: Wed Apr 08, 2015 1:52 pm
Location: North County San Diego

Re: what do others pay for umbrella insurance, and is it needed?

Post by cadreamer2015 »

We have a $2 million umbrella policy through RLI. Costs $473 per year. Happy to have it.
De gustibus non est disputandum
bighatnohorse
Posts: 318
Joined: Thu Oct 13, 2016 4:04 pm

Re: what do others pay for umbrella insurance, and is it needed?

Post by bighatnohorse »

$2 Million at $340/year with State Farm
Home, autos, rentals, camper.
Original cost was around $200 something about ten years ago.
Only one claim for totalling a camper at $18K about seven years go.
Bungo
Posts: 923
Joined: Wed Sep 28, 2011 11:28 am

Re: what do others pay for umbrella insurance, and is it needed?

Post by Bungo »

$249/year for a $2 million policy, from Geico where I also have my car insurance.
hicabob
Posts: 3129
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: what do others pay for umbrella insurance, and is it needed?

Post by hicabob »

$343 for $4 million through Amica bundled with home and auto.
UALflyer
Posts: 691
Joined: Thu Jan 17, 2013 10:42 am

Re: what do others pay for umbrella insurance, and is it needed?

Post by UALflyer »

oldfort wrote: Thu Sep 17, 2020 11:20 am How does any of this scale to someone like the OP, who I assume isn't one of the top 20 most famous tv personalities in the US, has say $1M in tax advantaged accounts, another $1M in taxable accounts, and a home in the $500k-$1M range?
To me, based on the limited info in the OP, I'd be inclined to keep an umbrella at the same $2MM. As strange as it sounds, I'd check with the company to see whether bumping up the coverage would result in any additional discounts on other policies, which happens, and makes the overall policy premiums cheaper. That's because the additional discounts on those other policies can be greater than the additional premium that the OP would pay for the umbrella.

As several others have pointed out above, it's very difficult to say all that much about his price, as we are not really doing an apples to apples comparison. Some umbrellas include uninsured/underinsured coverage, which makes them more expensive. There can also be situations where the umbrella itself seems cheap, but the underlying policies are expensive. The opposite can also be true, as with some companies the umbrella premium seems high, but having it qualifies the policyholder for additional discounts on the other policies, such that on a net basis this seemingly expensive umbrella is actually much cheaper.

The only real way to know for sure is to price shop.
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Re: what do others pay for umbrella insurance, and is it needed?

Post by Flyer24 »

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Osterix
Posts: 40
Joined: Sat Mar 03, 2018 8:55 am

Re: what do others pay for umbrella insurance, and is it needed?

Post by Osterix »

talzara wrote: Wed Sep 16, 2020 11:13 am
Osterix wrote: Tue Sep 15, 2020 6:44 pm I also have State Farm and pay twice that for the same amount.
Stinky wrote: Tue Sep 15, 2020 7:14 pm Maybe because I’m double your age?

Also own my house.
State Farm does not surcharge older drivers on its umbrella policy. It only surcharges younger drivers below the age of 25.

State Farm also does not charge for home ownership. The umbrella rate is a bundle.

Florida is expensive because the risk pool is older. Retirees are a larger percentage of the population in Florida than in any other state. Retirees also have more assets to protect, so they are more likely to purchase umbrella insurance. Since older drivers are not surcharged, the higher crash risk is subsidized by younger drivers.

Umbrella policies may also include excess underinsured motorist coverage. Florida has the highest percentage of uninsured drivers of all 50 states, and it has the lowest required liability limits. Most of this will be seen in the UIM premium on your auto insurance policy, but some of the increased risk will make it to the umbrella.
Very enlightening, thanks! Seems like you have expertise in this area.
Slacker
Posts: 793
Joined: Thu May 26, 2016 8:40 am

Re: what do others pay for umbrella insurance, and is it needed?

Post by Slacker »

Was paying around $220 for $1 million in coverage with Amica.
Now we pay around $140 for $1 million with USAA (and overall we are saving several hundred on property insurance as well).

No teenage drivers in the house. We do have a dog and a gun on premises. No power boats or motorcycles.
We carry the umbrella policy because we have a rental property and each of us have a low 6 figure income, so it gives us piece of mind to have the coverage.
brajalle
Posts: 321
Joined: Tue Jul 13, 2010 12:03 pm

Re: what do others pay for umbrella insurance, and is it needed?

Post by brajalle »

Indiana Farm Bureau. There is much that goes into an unbrella premium that isn't captured when people just tell you premiums as others have indicated. Even then, I haven't seen any post an actual breakdown in these threads. You can ask your agent if they will breakdown your premium into individual components.

Here, for example, is the last renewal of our $1mil premium for $439/yr. Seems expensive compared to the rest, but there is a reason. This is how the premium breaks down -
$163.00 - base premium, includes 2 cars and 1 home
$ 45.00 - 3rd car
$ 30.00 - 2nd home
$201.00 - UIM (first two vehicles $77.00/each, 3rd is $47.00)
$439.00 - Total

The UIM benefit is no longer offered, it is grandfathered. As you can see, it varies based on # of vehicles, houses, and an additional coverage not included in the base price. I'm going to be fairly happy when we get rid of the 3rd car and we have already sold our prior home (thank goodness). If we only had the base umbrella policy, a single home, and two vehicles, the cost would be a fairly low $163/yr! I'm still debating on the value of the UIM coverage that is grandfathered - it seems difficult to evaluate, but anything a company doesn't want to cover seems like it could be worthwhile to keep.

In regards to the underlying coverage required people mentioned, it is typically $500k/$250k - ie bodily total, per person, & U/U. People may also want to inquire about the required underlying CSL (combined single liability) - in my case it was $300k. This saved me a little bit vs the standard option.
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