Multiple Umbrella Policies for Different Properties?

Question

Has anyone considered getting two or more umbrella policies from different carriers to get around the rental property limit?  If the policies specifically include/exclude properties, why couldn't you just get two or more policies for excess liability on the different properties?

Matthew Saskin · Answer

This is our move.  We have individual homeowners/landlords policies on all of our properties, and an umbrella policy covering everything above that.

Marco G. · Answer

Very good to know, thanks a ton @Kimberly T.! Yes, my current umbrella is with auto insurer, although home is elsewhere.

I will definitely be giving state farm a call!

Kimberly T. · Answer

No, all our properties are held in our names.  We have no LLCs or anything like that.  That wasn't a problem with State Farm.

We already had our home insurance and car insurance with State Farm, so that's why we went with them for the umbrellas.  From what I've read, and I don't know if it's a hard rule or just common, but people typically go with the company they have their home/car insurance with (I think companies don't like to do umbrellas if they aren't insuring the home/car...?).

Marco G. · Answer

@Kimberly T.

Are your properties held in an LLC or other corporate form?  I understand that's a requirement for the commercial policy, but I'm still shopping around.  Maybe I will speak with State Farm.

Thanks!

Kimberly T. · Answer

We have a personal umbrella and a commercial umbrella, in addition to all the insurance on each individual property.  The commercial umbrella covers all our rentals, the personal umbrella covers our house and cars (in case something happened with our house or cars, and someone found out we had rentals and tried to sue us for the value of all those).  We have State Farm.  I'm not aware of them having any limits on how many rentals they will cover, but we currently have a triplex and 3 fourplexes.

Yenipher Barrientos · Answer

Oh, @marco G. I see, yes when you've reached your personal lines limits for properties insured the next option would be to have a commercial policy where you can fit all your investment properties and have a blanket coverage that protects all those. I would try Farmers I know that our commercial team gets lots of business because apparently the price is reasonable. I work in the personal lines department so thats not my specialty, but any personal lines questions I'd be happy to help!

Marco G. · Answer

I understand that @Yenipher Barrientos.  The problem I ran into was the limit on number of rental properties my current insurer will give me coverage on (4 rental units).  In the process of finding another without this limit though.

Yenipher Barrientos · Answer

Like Joe B. pointed out it is not necessary to buy multiple umbrella policies (Don't waste your money) the whole point of an umbrella policy is to cover any excess that the underlying home liability does not cover. So if you have one umbrella policy with a high limit ex: $5 million this should be enough to cover you in the event of anyone trying to come after you for monies.