Umbrella insurance - on the fence

12 Replies

I am trying to figure out if i need further umbrella insurance. my insurance with nreig already has 1mm liability per property on coverage. I have 10 rental homes now. 

I got quotes from nreig for additional umbrella insurance that covers all of my rentals and it was approx 1000$ per year for 1mm coverage.

Considering I already have liability of 1mm per property do I still need umbrella insurance. 

My umbrella insurance encompasses my home, auto, as well as my rentals. The way it's arranged each one has liability of $500,000 and the umbrella goes on top of each one. For instance, I saw on the TV news someone driving down the street, went through a red light, and mowed down 10 people. If the driver is a real estate investor, each victim sues you for a million, they'll come after your home, then all your rentals, i.e. everything. With umbrella, it's relatively cheap for each incremental million, so if you got $3 million with 10 properties,, that'll be plenty.

Originally posted by @Frank Chin :

My umbrella insurance encompasses my home, auto, as well as my rentals. The way it's arranged each one has liability of $500,000 and the umbrella goes on top of each one. For instance, I saw on the TV news someone driving down the street, went through a red light, and mowed down 10 people. If the driver is a real estate investor, each victim sues you for a million, they'll come after your home, then all your rentals, i.e. everything. With umbrella, it's relatively cheap for each incremental million, so if you got $3 million with 10 properties,, that'll be plenty.

 any companies you recommend. the quotes so far are high like 2k for 3 mill coverage

I use 1 LLC for asset protection and 1 umbrella policy for all rental and personal property liability protection. Umbrella policy is around $1,100 for $2M.

Originally posted by @Terrell Garren :

I use 1 LLC for asset protection and 1 umbrella policy for all rental and personal property liability protection. Umbrella policy is around $1,100 for $2M.

 who is your provider for umbrella protection

Originally posted by @Sunny D. :
Originally posted by @Frank Chin:

My umbrella insurance encompasses my home, auto, as well as my rentals. The way it's arranged each one has liability of $500,000 and the umbrella goes on top of each one. For instance, I saw on the TV news someone driving down the street, went through a red light, and mowed down 10 people. If the driver is a real estate investor, each victim sues you for a million, they'll come after your home, then all your rentals, i.e. everything. With umbrella, it's relatively cheap for each incremental million, so if you got $3 million with 10 properties,, that'll be plenty.

 any companies you recommend. the quotes so far are high like 2k for 3 mill coverage

    @ Sunny D., My former broker used Travelers, but I switched to using AAA (the Auto Club people) two years ago, and they used two local carriers, with cheaper rates, but these carriers only operate in New York State. Travelers does $2 to $3 million. I asked my broker back then about doing more than $3 million, and she didn't think it was necessary. 

With insurance, it's better to go through local brokers than go direct for better rates and service, even though they get paid a commission. In fact, these two local carriers that insure me I never heard of before, no TV ads, so I wouldn't even know to call them if I tried on my own without the broker. 

My old broker of 40 years, my dad used them originally, retired and then his nephew and niece took over. But before the switch over, they got lazy, and just renewed my insurance without checking for better rates as in the past. With AAA, I'm reviewing them as well as they're not prompt in returning calls, or simply don't. So with brokers, call around your area, vet them before you use them.

Oh, one more thing. I had a problem with umbrella insurance at one point, the carrier I used will only do up to 6 properties, which they have been doing, and I had to get a commercial policy costing me several times more. They called around and found a new out of state carrier for me, and I was impressed. This is before they got lazy. 

Originally posted by @Terrell Garren :

@Sunny D.  USLI for Umbrella policy and American Modern for individual hazard policies. 

 Thanks, I have reached out to USLI. 8 of my homes are out of state, hopefully they will cover them

I would love to hear how people handle umbrella insurance with properties in multiple states. Are they able to be covered in one policy?

Originally posted by @Jason Bott :

@Brian H. & @Sunny D. USLI or PersonalUmbrella.com are where most investors find umbrella options.

They can do multiple states and group LLC's and personally titled properties on the same policy.

 thank you, usli reached out to me so hopefully they offer a good quote. i was on fence as i already have 1mm liability per property so wasnt sure if i needed more umbrella

Originally posted by @Jason Bott :

@Brian H. & @Sunny D. USLI or PersonalUmbrella.com are where most investors find umbrella options.

They can do multiple states and group LLC's and personally titled properties on the same policy.

 I got in touch with a agency suggested by usli, they wont do umbrella unless i put either my primary or auto under their insurance agency. was odd so will call others

Originally posted by @Sunny D. :
Originally posted by @Jason Bott:

@Brian H. & @Sunny D. USLI or PersonalUmbrella.com are where most investors find umbrella options.

They can do multiple states and group LLC's and personally titled properties on the same policy.

 I got in touch with a agency suggested by usli, they wont do umbrella unless i put either my primary or auto under their insurance agency. was odd so will call others

See, this has been a wall I have also run into. These companies are refusing to sell me an umbrella policy if I don't move other policies under them.  I am very happy with the carrier(s) of my other policies for personal auto, renters insurance, health insurance... so this is becoming really irritating, to say the least. I feel like every day I go without an umbrella policy I am at high risk.