Do you have an umbrella insurance policy?

[Elan]

Just curious as to whether any of you have an umbrella liability policy, and if so, how it's deductible dovetails in with the liability limits of your auto and home policies?

 

[Ken555]

Yes, I've got one... I believe I need to have high auto insurance to qualify (I think I have 250/500/100 on auto). The policy covers 'bodily injury, personal injury, advertising injury and property damage liability' and 'excess uninsured motorists insurance', and states "if a covered person is legally obligated to pay damages for a loss to which this policy applies, we will pay the net loss minus the retained limit." Interestingly, I don't see the word deductible anywhere in the policy.

FWIW, I have one because I own a business. If I didn't, I probably wouldn't have it. Even so, it's not expensive (mine cost $245/year after all fees).

 

[jlr10]

No. We don't have an umbrella policy, but probably should.

Most umbrella policies are different, so they have to be read for terms and condition. An umbrella policy can do two things. 1) Provide additional limits of liability should the primary/underlying policy limits be insufficient for a claim 2) Sometimes provides coverages that aren't on the primary/underlying policy.

Traditionally if it is #1 there is no deductible which applies for the excess layer of coverage (as there was a deductible paid on the primary/underlying policy.) If it is #2 a deductible or retention can apply.

The difference between a deductible and a retention: With a deductible the insurance company pays the claim then ask the insured to reimburse them for the deductible. With a retention the insured pays the retention amount before the insurance carrier begins to pay on the claim, which is why it is sometimes called a self insured retention or a SIR.

Most umbrella policies have minimum limits which must be carried on the primary/underlying policies. If those limits are not carried some umbrella policies have a clause which makes the insured responsible for the difference between what was required and was actually carried, which makes the difference an involuntary self insured retention.

 

[Kal]

No. We don't have an umbrella policy, but probably should...

Think of it this way if you have any assets. If you nail a doctor, driving a high-end vehicle and cause a severe injury, do you think the doctor's insurance company will just settle for the amount of your insurance coverage???? All your assets could very easily be at risk especially if the doctor couldn't work for some period of time. If he has a loss of limb, you might as well see your attorney, Mr. Bendover!

 

[pgnewarkboy]

Yes I have one. They are relatively inexpensive. Run-don't walk-to your insurance agent and get one for at least one million. You are naked without one.

 

[Passepartout]

We have one, primarily because of DW's law practice, but also 'just in case'. Cheap peace of mind.

Jim Ricks

 

[vacationhopeful]

Yes, for over 25 years.

 

[glypnirsgirl]

Why do you ask?

 

[Elan]

Why do you ask?

Just soliciting input in attempt to understand the relative value.

 

[M. Henley]

Yeah

$2 million.

 

[Timeshare Von]

Yes we do and have for about 10 years. I don't have the policy with us now, but can say the reason for it is because we have generally owned homes with swimming pools and with that comes added risk/liability. We also own a dog which by some accounts is considered viscious although she would never bite a living thing . . . you just never know.

Also, with my work, it is always possible I could be personally sued for actions of my association. We have D&O (Directors & Officers) insurance but sometimes it is wise to have your own coverage just in case.

Our package provides excess liability coverage (above the others) to $1M for around $200.

 

[pedro47]

Yes! I think for the past 25 years.

 

[JoAnn]

Yes, we have one. It was suggested to us by our agent quite a few years ago when DH was working and we've kept it up. Hope we never need it, but if we ever do we'll be covered.

 

[myhottoddy]

Yes, very important to have just in case someone files a lawsuit. We recently raised the limit to $2,000,000 from the typical $1,000,000. The increase was roughly 50% of the original cost.

 

[MichaelColey]

We have one, but only for $1 million - I should probably raise that. They're really cheap. (Ours is under $300/year.)

Side note: It's FAR better (and cheaper) to have a high coverage than a low deductible. Raising liability limits above the legal minimums and/or getting that umbrella costs almost nothing, while lowering a deductible from $1000 to $500 (or $250!) costs far more than you'll ever see out of it. If you ever need those high limits even once, it can save you several times as much as a lifetime of the additional payments.

 

[Jaybee]

Yes, We've had one for many years. They are relatively inexpensive for the coverage. Now I'm wondering if we should increase our 1 million coverage..???
Too many sue-happy people running around loose. Oh... No deductible, either.

 

[Icc5]

Pool

Yes we do and have for about 10 years. I don't have the policy with us now, but can say the reason for it is because we have generally owned homes with swimming pools and with that comes added risk/liability. We also own a dog which by some accounts is considered viscious although she would never bite a living thing . . . you just never know.

Also, with my work, it is always possible I could be personally sued for actions of my association. We have D&O (Directors & Officers) insurance but sometimes it is wise to have your own coverage just in case.

Our package provides excess liability coverage (above the others) to $1M for around $200.

We too have one which we got about 10 years ago for a couple reasons. We had a pool and 2 teen age drivers. We also used to flip houses and had lots of work done before flipping. Today, I don't have any of that but feel that I sleep better knowing I'm more well protected .
Bart

 

[Jon77]

Umbrella

Yes we do. We have a $2,000,000 umbrella with State Farm and the policy premium is $197 per year. The policy premium probably varies depending on where you live.

Jon

 

[tlwmkw]

Yes, we have a $2 million umbrella policy. We got it after being involved in a car accident- we turned left and had just completed the turn when a truck came barrelling down on us, on our side of the road, way over the speed limit, with the sun in his eyes, and hit us head-on. The local trooper said it was our fault because we had just made the turn, and by definition we had turned in front of an on-coming vehicle and that turning vehicle was always at fault in those situations. Well, we learned a few things in all that mess- 1) have an umbrella for a large amount and the insurance company will fight much harder to avoid a big pay-out. 2) don't trust the local sheriff's dept to decide who is at fault- demand that the state troopers get involved and do an analysis of the skid marks and vehicles to determine who is really at fault. 3) have a vehicle with air bags and wear your seat belts (this was in the early days of air bags and they saved our lives). The other vehicle had an unsecured passenger and a child who wasn't in a car seat. After much fighting we prevailed and it was all settled- but only because we took pictures of our vehicle showing a front end collision and not a side swipe (which would have occurred if we were in the turn) and also we took pictures of the skid tracks that clearly showed we were on our side of the road. If we had had the umbrella the insurance company would have done more of this for us and we would have had far fewer worries.

I say- get the umbrella for the peace of mind.

tlwmkw

 

[akp]

Absolutely!

We have one for $1 million and should probably consider increasing it.

If there are other stay at home moms out there, you should also think very seriously about a large term life policy on yourself. If you die when your kids are small, the financial burden on your husband to try and pay for all the work you do could be catastrophic.

Again, for just a few hundred dollars, you can get a very large term life policy for 10 or 15 years (until the kids are college age).

Do it now, while you're young and healthy. Once you have a scare, it will be expensive and difficult to get what you need.

 

[Luanne]

We've never had one. Our financial advisor is suggesting we get one, so we probably will.

 

[donnaval]

We had one a while back, and let it drop. We just had a confab with our attorney yesterday about updating our wills, etc., and when this came up he told us to get that umbrella back in place, asap. So, today I've been on the phone with our insurance agent, and while on hold waiting for a quote, found this thread!

The umbrella policy for our personal coverage is pretty inexpensive.

However, we also should have a separate commercial policy to protect some business interests, and that is about 4 times more expensive than the personal umbrella.

Still cheaper than losing everything, though.

 

[IngridN]

Absolutely! As stated by a couple of posters above, your assets are at risk without one. It's been recommended to us that the coverage should equal your net worth or close to it. This assumes your net worth is greater than your home/auto coverages.

In order to keep the costs of the policy reasonable, you will need to have your homeowners and auto insurance with the same insurer. We had to move our auto from AAA.

Ingrid

 

[frankhi]

My wife had a minor fender bender a few years ago, when I tried to raise my umbrella from 1M to 2M the agent said we had to wait til 5 years had past from the accident. (allstate FL)

 

[Courts]

We have one for $1 million and should probably consider increasing it.

If there are other stay at home moms out there, you should also think very seriously about a large term life policy on yourself. If you die when your kids are small, the financial burden on your husband to try and pay for all the work you do could be catastrophic.

Again, for just a few hundred dollars, you can get a very large term life policy for 10 or 15 years (until the kids are college age).

Do it now, while you're young and healthy. Once you have a scare, it will be expensive and difficult to get what you need.

Yes, the few hundred dollars cost for umbrella IS a bargain.

As for life insurance, my son-in-law (30'ish) was against life insurance till an MRI found what looked like a tumor. Ooops, rates just went way up for him.

.