umbrella insurance?

13 Replies

i have one rental property.  i also have a new car and a primary residence where my wife and child sleep!  should i purchase an umbrella policy with 1mil in liability coverage or purchase a stand alone policy that covers just my rental but has a 500k liability coverage? 

the stand alone policy that covers rental property with 500k in liability is 725/year thru Foremost

umbrella policy that covers primary residence, vehicle, and rental with 1 mil in liability is 3512/year with Liberty Mutual.  (Liberty Mutual does my homeowners and vehicle now for just about 2280/year) so the rental adds 1232/year

Joe,

The biggest benefit to an umbrella policy, as explained by my attorney, is that if you get sued for whatever reason, with only $500,000 in place, the insurance company will most likely send their "C" team in and settle.

If they're on the hook for $1.5 million, home policy plus umbrella, the "A" team shows up.

In addition, the umbrella policy SHOULD (depending on the company; I have USAA, so I'm not sure about Liberty Mutual) pay for your defense costs as well.

I feel comfortable with the advice from counsel as he has no affiliation with an insurance company, and has his own umbrella policy as well for his properties.

Umbrella insurance is usually the way to go considering you get quite a bit of coverage for relatively little cost.  Not sure why you're being quoted such an expensive rate.  

I have more cars and houses insured under an umbrella policy (same limit and also with Liberty Mutual) than you do, and my policy is only a little over $300/year.  I've also had an umbrella policy with a different company (Nationwide) and that was even cheaper (about $200/yr).

I recently purchased a new umbella policy with State Farm covering one personal residence, two rental duplexes (all my other properties are in LLC's) and two vehicles for $632. The coverage is for 2 million.

632 for a 2mil umbrella with primary residence, two rental duplexes and two vehicles?? who is your agent! 

Originally posted by @Joe Boggin :

i have one rental property.  i also have a new car and a primary residence where my wife and child sleep!  should i purchase an umbrella policy with 1mil in liability coverage or purchase a stand alone policy that covers just my rental but has a 500k liability coverage? 

the stand alone policy that covers rental property with 500k in liability is 725/year thru Foremost

umbrella policy that covers primary residence, vehicle, and rental with 1 mil in liability is 3512/year with Liberty Mutual.  (Liberty Mutual does my homeowners and vehicle now for just about 2280/year) so the rental adds 1232/year

 Those prices are crazy high!  Unless you have an exceedingly risky lifestyle or live in the nastiest possible neighborhood.  Insurance is local, I understand that, but adding the first 4 rental properties to my personal umbrella policy (State Farm, don;t know others) added only a very nominal amount (if any) to the premium.  Past 4 rentals, with State Farm, you need a Commercial umbrella, which is a bit more expensive, but still nowhere near your numbers.  So, definitely, shop around - around here, you could get a 2 million dollar policy covering your personal property as well as the first few rentals for well under $1000.  Now, what you do need is you need to meet certain individual liability limits on your car policy and all homeowner policies. 

My agent is Jim Rollo.  I am in the Binghamton market in Upstate NY. He is great. I just switched over to him from an independent agency and I saved a bundle.

@Joe Boggin  I have to second that those rates are way too high.  I think you will find most agents will be able to be more competitive.  Send copies of you policies to 2 direct writers (State Farm, all state, etc) and 1 larger independent agent who has 10+ companies.  This will give you a good feel of your market place.

Good luck

[email protected] | 414‑270‑6834

Just purchased Umbrella Policy from State Farm for 3 rental properties. Cost is $550 for 2 million coverage.

I own 8 properties in Connecticut and am paying $632 for a $2million policy with Lliberty Mutual. 

@Mark Liscia so do you have multiple umbrellas, one for LLC and one for personally owned?

I just purchased two umbrellas - one for my personal name - 2 properties $200.00 a year @ additional million. One is rented and the other one I live in. I owe $50K on the rental and the FMV is approx. $125K - so I'm basically covering myself from loosing/being sued on that equity.

2nd is in the LLC - 2 more properties - $188.00 a year @ additional million.

I'm a semi new investor (with rentals anyway) - over kill or no with having 2 umbrellas? The LLC is with my sister (who is a Physician) and want to make sure she is covered/protected.

Thanks all  

Hi Joe!  I am with the others - definitely talk to some other providers.  The policy should definitely not be in the thousands.  I also had to up my car coverage when I got the policy, but again, it was nominal compared to those rates.   

Medium labelJonna Weber, Jonna Weber Real Estate | [email protected] | 208‑608‑4884 | http://www.jonnaweber.com | ID Agent # SP41257 | Podcast Guest on Show #80

Wow.. pretty steep prices. I have USA and use them for everything... I just got an umbrella quote for 1 mil coverage @ 24$/mo. I have one rental sfh, primary residence and 2 newer vehicles. I love the info about the A and C teams haha. That is really good to know.

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