Umbrella Insurance Considerations

5 Replies

Hi All,

I've been researching Umbrella Insurance options and the information I have found seems to be a bit limited in regards to the pros and cons of each company (ie Safeco vs Allstate). I have a rental property in the Hollywood, CA area. Currently my insurance carrier is Farmer's, but I do not mind if I have to change policies. Also, I'll most likely be looking into a 2 million umbrella coverage. So my questions are the following:

1. What are the pros and con's any of you have noticed with specific companies and their umbrella coverage? 

2. Which company do you prefer for your umbrella policy coverage and why? 

3. Have you actually had to use your umbrella coverage? If so, how did it go? was it efficient? Were there any challenges you faced? 

Regards,

Steven 

@Steven Weiss in regards to #1, 99.9% of the time, Umbrella policies are an extension of the underlying Liability policy.  The Umbrella does not have unique coverages/exclusions, only the Liability policy does.

Example would be, the Liability policy excludes animal bites, then the Umbrella would exclude them.  If animal bites are covered, then the Umbrella would cover them.

Originally posted by @Steven Weiss :

Hi All,

I've been researching Umbrella Insurance options and the information I have found seems to be a bit limited in regards to the pros and cons of each company (ie Safeco vs Allstate). I have a rental property in the Hollywood, CA area. Currently my insurance carrier is Farmer's, but I do not mind if I have to change policies. Also, I'll most likely be looking into a 2 million umbrella coverage. So my questions are the following:

1. What are the pros and con's any of you have noticed with specific companies and their umbrella coverage? 

2. Which company do you prefer for your umbrella policy coverage and why? 

3. Have you actually had to use your umbrella coverage? If so, how did it go? was it efficient? Were there any challenges you faced? 

Regards,

Steven 

RE: 2 million umbrella coverage

Be careful here, they may deny the 2M from the start, YMMV.  You may want to discuss with your underwriter to start at 1M first, and after a year, increase to 1.5M or 2M. If they deny the 2M, you will be flagged by other companies. 

#1, and #2. Umbrella policies are too cheap to skip.  Get a good reputable company with good ratings and you will be ok, don't sweat it too much. They are cheap because they litigate to avoid paying.  Check Bogleheads.

I use USAA and Shelter.  USAA has great customer service, but they do not allow cash value so they tend to be more expensive.  Shelter has very competitive rates.  Typically, the umbrella policy only covers properties insured by that insurer.  I have never had to use either of my policies.  

Umbrella insurance doesn't cost much but the underlying limits can be pricey on car insurance. Make sure you price out the underlying insurance too because that is where they will get you.