Rental Property Insurance through a diff provider than umbrella?

Question

This is just a general question, but I see it discussed on here a lot that your rental properties are under a different insurance company than your primary residence (and other items) because usually your main insurance companies aren't great with investment insurance.  The question I have is, I have an umbrella policy through my main insurance company, is there any issue with having the rentals using a different company?  I'd like to save money but not if it's going to cause me headaches down the road.  Looking for some advice.  Thanks

Brandon H. · Answer

Usually, when you buy an umbrella policy, you have to provide evidence of your existing coverage (at least I did).  This would ensure that the umbrella company is informed of the other insurance company's coverage levels.  For the other company, if liability is above their limits, I'm not sure they really care because it is no longer their problem.

Jason Bott · Answer

@Aaron Taylor

Very common issue and it is company specific as @John Mocker states.

I'd say 9 out of 10 of my clients have a different Umbrella carrier than who is insuring the rentals.

Having different insurance carriers will not cause headaches in the future as long as both companies are fully aware of how the properties are titled and the Umbrella lists all of the named insured's correctly.

Jason G. · Answer

I have one carrier on my primary, another on all my rentals, and then United States Liability Insurance (USLI) for umbrella.  I used to use Geico for Umbrella but they have a cap on how many properties they will cover.  I do not have multiple umbrellas though.  USLI covers everything, primary, rentals, and auto.

Matt Moylan · Answer

Hey @Aaron Taylor great question.

I'm also in the KC area and work downtown for an insurance broker licensed in all 50 states.

We often see this as a problem with companies not extending liability from the umbrella to rental properties.  We do however have a couple companies that will do so as well as companies that specialize in writing investors.

I'll send you a message.  I  would be happy to connect with you and see how I might be able to help you.

-Matt Moylan

John Mocker · Answer

Aaron,

That will be a company specific issue.  They may or may not cover over another company's policy.  Check with your agent.  If your umbrella does not cover over the rentals have your agent check on PersonalUmbrella.com.  They write a stand alone umbrella that should cover over both the homeowners and the rentals.