How to qualify for umbrella insurance

6 Replies

Hi All! I would need some advice on purchasing insurance policies for my rental properties. I now have 10 rentals. I have been researching different options to protect against unforeseeable events. I've read about LLC vs umbrella insurance. However, when I called Geico I was told that I'm not qualified to purchase an umbrella insurance since they only sell umbrella insurance for up to 4 rentals. I'll call other insurance companies, but since Geico is a big company, I'm assuming this limit will be true for many other insurance companies as well. I question is how to get umbrella insurance for all my 10 rental properties?

Any advice on LLC vs umbrella insurance is much appreciated as well!

@H. C. 

LLc and Umbrella insurance can both protect you, but they are not really one versus the other. LLC is the legal entity's and Umbrella is an insurance product. They can both be used in together.

Most of the insurance companies you see advertising on the radio and TV are focused on personal lines insurance such as auto, homeowners, life insurance, etc.  You will want to talk with an independent insurance agent and if possible someone who specializes in commercial property.  A few questions,

Can you ask for an umbrella policy from the insurance company currently insuring the 10 units?

Do you have all of you properties in your name?

Call StateFarm and ask for business umbrella. It's a bit more expensive but definitely covers 10 properties (don't know what the max is or if there even is a max). There are many threads about LLC vs umbrella, but in my opinion an LLC will not protect you from people coming after you.

I happen to know about State Farm because that's my carrier, but I bet other companies offer something similar.

Thanks @Jason Bott!

Most units are covered by American Family Insurance. I'll check with them.

 Yeah, all of them are under my name right now. Will it make a difference when I buy umbrella policy for properties under my name vs under LLC?

Thanks @Andrew S.! 

I'll call them to see.

@H. C. 

@Andrew S.  

Insurance companies do not like to have their Umbrella sit over other insurance companies.  So it is always best to have the insurance company who is insuring the rentals to offer the umbrella.

Am Fam can do it for sure.

If you don't like the pricing they are giving you, you most likely need to quote out everything.

Good Luck!

Originally posted by @Jason Bott:

Insurance companies do not like to have their Umbrella sit over other insurance companies.  So it is always best to have the insurance company who is insuring the rentals to offer the umbrella.

That certainly makes sense! Thanks Jason!

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