Multiple Umbrella Policies?

Question

I need help finding umbrella insurance, and I've learned there's no better place to ask my RE questions than on the BP forum! :)

My husband and I would like to purchase umbrella insurance We *think* we need multiple policies, possibly 3 of them, broken down by who owns what. Here's our situation - What would you advise?

• My husband and I (together) jointly own our personal home in CA (we have a mortgage on it).
• My husband alone owns 1 vacation property in ME, 3 single family rentals in CA with mortgages, and 6 single-family rentals in IN.
• My IRA owns 2 single family rental properties in IN and 1 single-family rental property in OH.

None of these properties are currently in a trust or LLC, they are just in our names and the name of my IRA.

So far, I've talked to Geico and Foremost since we have dwelling insurance with them. No luck with either.

I definitely want to cover all these properties (and maybe our boats and cars, too) with umbrella insurance.

So: Who do I call for umbrella insurance? What should I do? Or What would you do?

Jason Bott · Answer

@Storm Silva for those of us who are independent agents/brokers in the insurance world an Agent and Broker are the same thing. there is nothing the other can or can not do.

A Direct writing agent, who represents a single company, and per their contract cannot sell other insurance carrier products, may be giving a bias very point.

Just find an independent Broker/Agent and you can get access to multiple insurance options.

Nancy Bachety · Answer

@Mary Ann Casey You invest in four states so you might need more than one broker. I ran into this when I shopped for an umbrella policy too. My broker in NY can’t write for my FL or NC properties. Wouldn’t touch my rental in an LLC anyway. I’m still shopping for a policy.

Ameriprise was happy to quote me for umbrella but I really questioned theit coverage. I’ll probably revisit it with them since I’m not getting anything better.

@John Mocker is personalumbrella.com something only brokers can buy? If so, please pm me.

Jason Bott · Answer

@Mary Ann Casey

You could put it all under 1 Umbrella Policy, but I think you would be violating the IRA rules with commingling your personal finances with your IRA...but I am no IRA expert.

The maximum # of Umbrella policies would be 2.

1 covering all of the assets in the IRA

Second going over your personal home and auto, along with all of the rentals.

Yonah Weiss · Answer

I have a great insurance guy who is direct to over 40 national insurers, which means he is writing the policy to suit your unique needs. please PM for his contact.

Dmitriy Fomichenko · Answer

@Mary Ann Casey,

The properties owned by your IRA can not be covered by the umbrella policy for your personal properties (and visa versa), this would be violation of the IRS rules. So you will need two separate policies.

John Mocker · Answer

Mary Ann,

I've used PersonalUmbrella.com for my clients needs with multiple properties. If you work with an Independent agent for any of the properties I would have them check that market.

Jason's point about the IRA would be important to check out with your Atty & CPA. Even if a company would include those 2 properties, you may not want to for other reasons.

Multiple Umbrella Policies?

Multiple Umbrella Policies?

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