Umbrella policy from different insurance carrier?

Question

I've got my primary home and cars insured with one company (carrier #1) but their quotes for my rental were twice as much as anyone else. I received a reasonable quote from a second carrier (#2) just for the rental and I wanted to cover it with an umbrella from the first carrier. Unfortunately the first carrier doesn't seem to understand my questions about if the umbrella will cover the rental even though they policies aren't all through the same carrier. Can I assume the umbrella from carrier #1 will cover my rental if the policy from carrier #2 is exceeded in some way? Should I look for specific verbiage in the umbrella policy documents (I haven't received any details just a a dollar amount for the $1M umbrella)

Thanks

Jason Bott · Answer

@Lulu Logan what you are running into is common in the industry.  And, the umbrella only needs to covert the locations that are listed on the umbrella policy.  So you could have locations that are not covered by the Umbrella if you did not add them or if the underwriter chooses not to cover them.

Sounds like you need to work with the commercial carrier that has your rentals and get the umbrella through them.  $1M in coverage on a commercial umbrella for 5-10 locations is $350-$400 per year.

Lulu L. · Answer

I called Travelers - my Primary Home Insurance where I have an Umbrella policy to let them know I have another rental to add; now they are charging a higher premium; and they always ask for a copy of the declaration page ( I have a separate policy with rentals since they are a commercial home insurance); and IF they (Travelers) does not like the coverage, they will drop your Umbrella Insurance completely.  Has this happened to anyone?  Any recommendations on stand alone Umbrella Insurance companies?  I'm not an attorney, but by law when you purchase an Umbrella policy they will have to cover ALL properties if you tell them or not; and I've been transparent and told them every time I add a rental but now my coverages are through the roof.

Andrew K. · Answer

@John Mocker He was an agent.  He just gave me unhelpful single sentence responses to every question.

All is good though.  I confirmed the umbrella will cover me on the rental.

John Mocker · Answer

Andrew,

It sounds like you do not have an agent for the First carrier.   The question you have is a simple one and should be easily answered by that company.  You may have to ask for a supervisor.  I would ask for the answer in writing.

As Nicole mentioned, some do and some don't cover over policies issued by a different company.   We have about 30 markets and varies greatly.  I have some companies that will write the umbrella if they cover the auto, others will only write it if they cover the home, and still others will not write it unless they cover all the policies (auto, home, dwelling, etc.)

If you can not cover both locations on the same umbrella with Carrier 1 or Carrier 2, there are still options for you.  There are stand alone Umbrella markets that will cover over both the home and the rental policy.  PM me if you have to go that direction and I will let you know who we use.

Casey J Burkhead · Answer

Like Nicole said, it depends on the company.  And if carrier #1 can't answer whether their umbrella will cover your rental that is insured with carrier #2, then you may want to talk to another carrier.  OR you could always go with a stand-alone umbrella from PersonalUmbrella.com which will cover your properties regardless of who has the underlying limits.

Nicole A. · Answer

I think it depends on the company. Some require that if they do an umbrella, that all of your other insurance also be with them. Others, for example Statefarm, just require a declarations page of your other insurance and they will do an umbrella.

Was a quote for umbrella that much more from the second carrier than the first to not just bring it over as well?