Umbrella Insurance- Do You Use A Different Insurance Provider?

Question

If you have standard landlord insurance on your individual properties, and want to put on an umbrella insurance policy, is it better to use a different provider to "diversify" coverage? Potentially if your initial policy doesn't cover something then there's a chance that your umbrella policy will?

Alternatively, is it better to use the same provide so the stacked policies fit together better?

James Mcsweeney · Answer

There are numerous companies you could look through, but I always suggest going through a broker.If you go through a direct/captive insurance writer (State Farm, Allstate, Farmers, or most of the big name brand names) they only have access to their lines of products, so you dont really know if you are getting a great deal.  You're simply getting the best deal their product can provide. Broker's will have numerous companies and some companies, like the one I work at, have specialists who only work with investors.

John Mocker · Answer

Zander,

Most Personal Umbrella policies are based a standard policy form.  Most are based on the ISO (insurance Services Office) form but there are a couple of other standard forms.  There are some specialty forms as well.  There may be some specific situation where it would be better to have one form over the other but I have never seen that researched.

The main purpose of an Umbrella policy is to provide additional limits of Liability coverage in case a covered Liability claim exceeds the coverage of an underlying policy (home, rented dwelling, car, boat,...).  In my experience, the rates offered by your homeowners or auto insurance carrier will probably be less than a stand alone Umbrella policy.  Some Insurance Carriers will not write the Umbrella if they do not insure both the home and auto.  Other carriers will do the umbrella if they write the auto or write the home.

A stand alone umbrella is generally more expensive but may be needed if:

- your driving record or claims history is an issue

- if you own more rental properties than your companies Umbrella guidelines allow

Hope this was helpful.

Jon Kelly · Answer

@Zander Kempf As @James Mcsweeney said, it's best to go with an insurance broker that has access to numerous insurance markets. It shouldn't matter if you have the same or different insurance companies for the landlord or umbrella policies. You can ask for an umbrella policy that will "drop down" and provide coverage if the underlying landlord policy denies coverage. Just be sure to go with financially stable insurance companies that have a good reputation for customer service and paying claims.

Bill B. · Answer

I use Allstate for personal and rental properties (had to get an exception to have 13 property policies.) Either they don’t offer umbrellas, or mine doesn’t. My Allstate agent signed me up with USLI.

Jason Smith · Answer

@Zander Kempf you will probably get the best deal with same company that writes your car insurance. Safeco, as someone mentioned above, is probably the cheapest but REQUIRES you to have Safeco car insurances. My wife hit a parked car - minor damage to both cars, so the Safeco car insurance went through the roof. Had to find a new car and umbrella, as Safeco didn't do standalone umbrella. Was able to move home, car and umbrella to State Farm bundle and save a tiny bit. Farmer's considered us untouchable due to claim within the last 2 years.

Adam Azam · Answer

I have found that at different times, different insurance companies have a better rate. I have one property with Safeco and one property  with Foremost.  You should check around each time you need a new policy I think.

Umbrella Insurance- Do You Use A Different Insurance Provider?

Most Popular Reply