Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
Right now I have USAA for all my insurances including my rental property. They make me insure for replacement cost which is almost double what I'd want to cover it for. For my next purchase I'm looking at going with another carrier that lets me choose the amount I'm comfortable insuring it for. USAA tells me that they will cancel my Umbrella coverage if I don't have all my properties and vehicles insured with them.
Are there any companies that will give me an umbrella policy without having everything else with them??
Detroit, MI · Member since 2009 · 114 posts · 40 votes
12y
Yes there are. You want to talk to an independant agent that represents multiple companies. They write stand alone umbrellas and some companies like Safeco (offered by independant agents) will write the umbrella and they only need your auto insured with them. The "umbrella only" companies are a little less known but as long as they offer the coverages you are looking for and have an A rating or better then that will be your best shot.
Insurance Agent · Olympia, WA · Member since 2014 · 168 posts · 88 votes
12y
Read the standalone umbrella policy carefully. If you have lower limits on your underlying policy and your retained exposure under the umbrella is greater than that, then you end up with a layer of exposure with no coverage.
For example, you have a $500,000 underlying liability policy (homeowners, for the sake of simplicity) and you retain $1,000,000 under your umbrella. Then you have a $1,250,000 liability claim. Your underlying policy pays $500k, your umbrella pays $250k, and you hold the bag for $500,000.
Of course, this might be moot. Your posts suggest you have adequate liability coverage.
For example, you have a $500,000 underlying liability policy (homeowners, for the sake of simplicity) and you retain $1,000,000 under your umbrella. Then you have a $1,250,000 liability claim. Your underlying policy pays $500k, your umbrella pays $250k, and you hold the bag for $500,000.
Of course, this might be moot. Your posts suggest you have adequate liability coverage.
See I was under the impression that my homeowners would cover the first $500k then my umbrella would kick in and cover the remaining balance up to $1 Million and then anything over $1 Million i would be out of pocket for. In this case $250k. I'll definitely have to read up.
Thank you both for chiming in. I'll try to find an agent to work with.