Any of you guys have an umbrella policy?

[Rick Lee]

I called USAA today to lower the deductible for the fire policy on my condo from $1000 to $500. Costs a whopping $28 more per year. I'll take it. Anyway, the lady asked me if I wanted to discuss an umbrella policy and so I decided to play ball. I'm not worried about getting sued, but car insur. limits in AZ are low and we have a ton of uninsured around here. They were going to give me a $1 million umbrella, but because I had called them about the leak issue with the neighbor in VA, they said they can only do it piecemeal and exclude the condo until that whole thing is closed. Seems to me these policies are pretty cheap, given the headaches they could save me. I'm not rich, but I'm not judgment-proof either. Anyone else have such a policy?

[matt f]

I have a $1 million umbrella. IMO best bang for the buck coverage to protect against the occaisonal over zealous attorney. Been covered for years and thankfully have never had a claim against the policy.

[fanaudical]

I have one. I have my auto, home, and life with the same insurance company and they made me a deal I couldn't refuse on the umbrella policy (~$50/year for $1M). Never had to use it.

[aigel]

I am not an expert - maybe some insurance guys can chime in. That said IMHO, an umbrella is necessary if you have any significant assets you care to keep. Your auto insurance example (you ending up under-insured) is only one scenario. There are other mistakes and accidents that are not covered under auto or homeowners policies which you should have some coverage for.

Note that your insurance may ask you to raise auto insurance coverage before they will sell you an umbrella (the risk of being under-insured in the auto insurance and the umbrella being needed will be significantly reduced).

G

[A930Rocket]

Holy cow! We have our home, cars, etc with State Farm and our $1M umbrella policy is about $750 a year.

Originally Posted by fanaudical

I have one. I have my auto, home, and life with the same insurance company and they made me a deal I couldn't refuse on the umbrella policy (~$50/year for $1M). Never had to use it.

[jcommin]

Originally Posted by matt f

i have a $1 million umbrella. Imo best bang for the buck coverage to protect against the occaisonal over zealous attorney. Been covered for years and thankfully have never had a claim against the policy.

+1

[LWJ]

Best bang for the buck ever. Personal lines liability is VERY broad coverage. Also cheap. I work in Commercial Insurance so do not claim to be an expert on Personal.

Buy it. It will help you sleep better.

Larry

[Jim Richards]

We've had an umbrella policy for years. RL, make sure you find out what they require for liability limits on your home and auto policies. You might have to increase them if you're currently running at the state-required minimums.

edit: I just realized aigel said the same thing about liability limits.

[widgeon13]

We have one with USAA as well.

[Halm]

Originally Posted by widgeon13

We have one with USAA as well.

Same here, USAA, since 1974.

[Shadetree930]

Originally Posted by A930Rocket

Holy cow! We have our home, cars, etc with State Farm and our $1M umbrella policy is about $750 a year.

Same scenario as yours but my policy is $126/yr. You need to talk to your agent or find a different one.

Something else to consider for those of you that may have co-signed for your kid's student loans .... if they die before paying those loans off, you are on the hook for them. You may want a policy on their life for the value of their loans. It keeps a tragic family event from becoming a tragic financial event as well.

[Lothar]

Yes. I don't open it in the house. It's bad luck.

All kidding aside, I have an umbrella policy for a small business that I operate. It is very affordable, at around $500 per year, and provides considerable peace of mind. $2MM in coverage, $1MM per occurrence.

The rates depend on the nature of the business.

[Drdogface]

Im with USAA as well and have a one mil umbrella. Way more expensive than some of you and I dunno why. I wantd 2 mil but can't afford it. No, I'm not high risk at all.

[froggert]

i live in nj which is known for having some of the highest insurance rates in the nation. the cost differential between a $1 and $2 million umbrella policy though state farm was less than $100/year.

[Dantilla]

Told my insurance agent a couple years ago that he is the only guy who I hope makes a lot of money off me-
I have several policies with him, and hope I never need to collect a dime back!

An Umbrella policy is a very good idea. Lotsa coverage for minimal cost.

[Danimal16]

Originally Posted by Halm

Same here, USAA, since 1974.

Same here. Since 1999.

[Rick Lee]

Ok, can someone here please explain how an umbrella policy works? Is it just a higher dollar limit on whataver kind of policy you get sued under? If my car insurance is $100k per person, $500k per accident, does the umbrella kick in if I get sued for more than $500k from a car accident?

Also, what happens after a policy has paid out its limit on one claim? Do they drop you or start it over with higher premiums? Can you ever get such coverage again after a monster claim?

[Drdogface]

Originally Posted by Rick Lee

Ok, can someone here please explain how an umbrella policy works? Is it just a higher dollar limit on whataver kind of policy you get sued under? If my car insurance is $100k per person, $500k per accident, does the umbrella kick in if I get sued for more than $500k from a car

Yes, pretty much correct but mine/most require you to have $300K on all policies before they will sell you an umbrella. USAA req that and that all your insurance be with them...or one of their subsidiaries

[Rick Lee]

Yeah, at the end of the conversation they told me I'd need to up my coverage with Progressive for my bike. USAA doesn't write bikes anymore and has a deal with Progressive. That's where they got me. It more than doubled my premium, but it was already so low I felt it was far too little coverage. I probably can't do too much damage to another car on my bike, but they'd sure do a lot of damage to me.

[Drdogface]

I don't much like dealing with Progressive anyway because of who actually owns it...a bit Parfy for here...but I have to have my boat insured thru them. My 911'SC is thru American Collectors in order to get actual value coverage. They are also a USAA sub.