Is umbrella policy needed?

[Jeff_G]

I asked about increasing the car liability to $1M & I increased the homeowners to $500,000. It was a few dollars less this way. Does the Umbrella policy offer more/better protection? Maybe I should just look into an umbrella policy again. (Two sons married & 1 Adult dd at home driving)>

usually the Umbrella policies kicks in after you exhaust you auto or home insurance limits. It can also cover you and you family personally for liability not involving your house and or automobiles. As an example, you are all out playing a round of mini golf and you son swings his club and accidentally smacks a gentleman in the eye. The gentleman looses the eye and cant work for 6 months you could be looking at a serious law suite. This is an example of where an umbrella policy would be used where your home owners and automobile might not.

The other to consider is your future earnings could be garnished with a judgment, so even if you do not have significant assets an umbrella policy might make sense.

Insurance is about mitigating risk, what is the cost for that. For me 1M policy is about $250 a year, this is a small price to pay to mitigate that risk.


While not quantified I have heard most insurance companys will fight a lot harder in court to protect against a 1M+ payout vs the standard home owner liability payout.

 

[hsmamato2]

We got one after our friends were being sued for a non-injury accident,and were in danger of losing their home to liars. That was when we learned that for a very small fee, we would not have to worry about losing our home,just in case. It was a minimal difference overall. My friends are not rich,and their home wasn't fancy, but those people wanted it. After 2-3 years in court,and paying lawyers fees, they ended up keeping their home. I don't want to have to go through all of that.

 

[dfchelbay]

I called my insurance company to make a vehicle change and was told by the agent that we really need an umbrella policy. We have $300,000 auto coverage but she said nowadays lawyers sue for $1 million or more and we could lose our 401K or our home in we were in an accident. Is she just trying to scare me or is this necessary? It would cost another $400 a year on top of our policy!

We paid a few hundred for 1 million policy. Small price to pay for benefit of attorneys going after the policies first before going after you & your assets. People with high profile careers are required to carry umbrella policies.

 

[AnnaS]

Thank you Jeff for the reply and explanation. I figured there had to be a little more than the home and car. I will look into it again. It's three of us now (until my dd gets married lol) but worth the peace of mind. Thank you again.

Okay - I tried to quote Jeff and not sure what happened?

 

[6bowmans]

No pool. Just live in a chicago suburb and Everything is pretty expensive here.

It is not so much the expense as I think it is the liability - potential for drowning.

 

[JeffreyY]

We are paying over $800 a year for our umbrella policy from GIECO. I will have to call and find out why we are paying so much. We live in a condo apartment and are not responsible for the outside. We do have 4 drivers, one is a teen. Just not sure why we are paying so much more then others.

 

[tvguy]

We are paying over $800 a year for our umbrella policy from GIECO. I will have to call and find out why we are paying so much. We live in a condo apartment and are not responsible for the outside. We do have 4 drivers, one is a teen. Just not sure why we are paying so much more then others.

Funny, everyone I talked to said umbrella coverage is cheap. $800 is not cheap to me, although it is only about $67 a month.

 

[CyndiLooWho]

We transport scouts to and from events all the time. The umbrella policy added about $150 to our total insurance bill for the year, but it doubled the auto coverage at no additional cost. Small price to pay if we were ever to have an accident with 6 scouts in the SUV.

 

[Eastern]

We are paying over $800 a year for our umbrella policy from GIECO. I will have to call and find out why we are paying so much. We live in a condo apartment and are not responsible for the outside. We do have 4 drivers, one is a teen. Just not sure why we are paying so much more then others.

How much coverage do you have? A 1 million dollar policy will be cheaper than a 3 million dollar policy.

 

[scrapquitler]

We are paying over $800 a year for our umbrella policy from GIECO. I will have to call and find out why we are paying so much. We live in a condo apartment and are not responsible for the outside. We do have 4 drivers, one is a teen. Just not sure why we are paying so much more then others.

Maybe you have a higher value policy? Or maybe the insurance cost on condos is figured differently than on single family homes?

 

[JeffreyY]

How much coverage do you have? A 1 million dollar policy will be cheaper than a 3 million dollar policy.

Maybe you have a higher value policy? Or maybe the insurance cost on condos is figured differently than on single family homes?

t

I called to see about our policy, it turns out it's over $900. We have a $1 million policy and cs said the condo part doesn't make it more or less but it is our zip code and the fact that we have 4 cars with two young drivers that makes the cost so high. It is still worth it to us to have this coverage.

 

[tvguy]

t

I called to see about our policy, it turns out it's over $900. We have a $1 million policy and cs said the condo part doesn't make it more or less but it is our zip code and the fact that we have 4 cars with two young drivers that makes the cost so high. It is still worth it to us to have this coverage.

Ouch. I have a house, 5 cars and 2 young drivers and my umbrella policy costs about one third that amount.

 

[Eastern]

t

I called to see about our policy, it turns out it's over $900. We have a $1 million policy and cs said the condo part doesn't make it more or less but it is our zip code and the fact that we have 4 cars with two young drivers that makes the cost so high. It is still worth it to us to have this coverage.

My policy limits are much higher, we have a house and multi cars, 3 young drivers, and we pay about the same premium as you do. You might want to check around for more quotes. Also, it is sometimes cheaper if you get your car/house/umbrella policies at the same place.

 

[Princess Disney Mom]

Yes get it. Our financial adviser suggested it especially we had teen driver. He said if we sent our son on an errand for us and he got in an accident we were liable and could be sued. I bundled all our insurance and it was not that much.

 

[APiratesLifeForMe2]

For those of you inquiring about the price variance of an umbrella policy:

Things that can cause high premiums- youthful drivers (under 25), number of cars, accident history, ticket/violation history, liability claim history on your homeowners policy, pools & trampolines, having your umbrella separate from your car/home carrier, if you have other policies like boats or rental properties since the umbrella covers them too

Things that lower premiums- fewer drivers, accident/ticket/claim free, drivers age 50+, fewer cars, combining policies, higher underlying limits on auto and home

Please keep in kind these will vary by the insurance carrier. Your premium may be higher than someone else because of a combination of these things or simply because your carrier has a higher rate. Food for thought.

As an insurance agent I never have a one size fits all answer. Not everyone needs an umbrella but they are a smart and typically a very affordable product to have for many people.