SIGforum
Umbrella Policies
April 06, 2018, 10:43 PM
Belgian BlueUmbrella Policies
I was wondering what the consensus was on the value having an umbrella liability policy. They are advertised as being a good plan for people who have significant net worth & assets like paid off home mortgages, retirement plans, etc. I was just wondering how they might compare to having assets in a trust.
April 06, 2018, 11:43 PM
Pipe SmokerI don’t know if a trust would protect your assets from a successful liability lawsuit, but an umbrella policy will. And if you have a sizable policy, your insurance company will provide for your legal defense if someone sues you. The peace of mind is well worth the modest cost IMO.
Serious about crackers. April 07, 2018, 12:39 AM
WasabibillI have a $4,000,000 umbrella policy because I have been involved with BSA and other youth activities in the church and was afraid of the economic consequences of a law suit.
____
I'm filled with gratitude for the blessings I've received.
April 07, 2018, 01:56 AM
Powers77Here is how you need to think about it assuming you have any assets to protect.
How much skin in the game do you want your insurance company to have? Minimums and you have an incident they cut the check and then you are on your own. $4 million umbrella, they are going to lawyer up and fight like hell. Cheapest insurance you can/should buy.
April 07, 2018, 02:20 AM
Rey HRHquote:
Originally posted by Powers77:
Here is how you need to think about it assuming you have any assets to protect.
How much skin in the game do you want your insurance company to have? Minimums and you have an incident they cut the check and then you are on your own. $4 million umbrella, they are going to lawyer up and fight like hell. Cheapest insurance you can/should buy.
That would be if they go to trial and lose. But they're going to assess the situation and if it looks like your side will lose, their incentive is to not lose up to their maximum so they will settle for a fraction of their maximum risk. The settlement will cover them not pursuing the matter further.
Your insurance amount should be reflective of how much you're trying to protect, just like car insurance or life insurance.
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
April 07, 2018, 09:07 AM
armedprofI have one for $2mm. I took it out when my oldest began driving. My biggest liability is one of my kids getting in an accident. I think State Farm charges me less than $200 per year for the coverage... Worth every dime.
Do, Or do not. There is no try. April 07, 2018, 09:54 AM
Powers77quote:
Originally posted by Rey HRH:
quote:
Originally posted by Powers77:
Here is how you need to think about it assuming you have any assets to protect.
How much skin in the game do you want your insurance company to have? Minimums and you have an incident they cut the check and then you are on your own. $4 million umbrella, they are going to lawyer up and fight like hell. Cheapest insurance you can/should buy.
That would be if they go to trial and lose. But they're going to assess the situation and if it looks like your side will lose, their incentive is to not lose up to their maximum so they will settle for a fraction of their maximum risk. The settlement will cover them not pursuing the matter further.
Your insurance amount should be reflective of how much you're trying to protect, just like car insurance or life insurance.
Agree 100% that the level of the umbrella should reflect what you have to lose. My main point is that an insurance company is more likely to aggressively defend and attempt to settle on your behalf when they also have more at stake. If you have the $100,000 minimum (for example) and they know it's going to blow through that level they will cut a check and have little more to do with it. If they have the $2 million umbrella they will aggressively work the case.
Work for one of the major carriers. Monday is our monthly large loss meeting where we review those cases that have blown up and determine how they should be handled.
Many years of doing this and I'm always amazed at how some seemingly simple situation where many logical folks would not see a financial exposure can rapidly turn to crap.
April 07, 2018, 10:01 AM
Tejas421Umbrellas are great piece of mind for very little cost. In my opinion the decision is a no brainer.
April 07, 2018, 10:06 AM
Sig209you guys have me thinking.
what are you guys paying for this type of insurance? I have considered it in the pat but need to follow through.
anyone get it through USAA?
also - do you have to jump through any extra hoops if you are a gun-owner or CHL license-holder?
-----------------------------------
Proverbs 27:17 - As iron sharpens iron, so one man sharpens another.
April 07, 2018, 10:22 AM
varoadkingquote:
Originally posted by armedprof:
I have one for $2mm. I took it out when my oldest began driving. My biggest liability is one of my kids getting in an accident. I think State Farm charges me less than $200 per year for the coverage... Worth every dime.
Can you confirm that rate. I have the same coverage and pay more than twice that in annual premiums.
April 07, 2018, 10:33 AM
BigWhup$5 million, $832/year at Allstate. The $5 Million is as high as Allstate goes on umbrellas.
April 07, 2018, 10:41 AM
msfzoeBuy it.
Cheap peace of mind.
$1 million of coverage is less than $200 per year from Liberty Mutual.
April 07, 2018, 10:44 AM
Pipe Smokerquote:
Originally posted by varoadking:
quote:
Originally posted by armedprof:
I have one for $2mm. I took it out when my oldest began driving. My biggest liability is one of my kids getting in an accident. I think State Farm charges me less than $200 per year for the coverage... Worth every dime.
Can you confirm that rate. I have the same coverage and pay more than twice that in annual premiums.
I wondered about that too. I have my auto, home, and umbrella policies with the same insurance company. The umbrella policy is sizable (>$2M), but my annual rate is about twice that.
Serious about crackers. April 07, 2018, 10:47 AM
Belgian BlueAs always, a great source of info. here. Thanks for all your input.
I have heard most umbrella policies require the purchaser to also have home and auto from their company before they will offer an umbrella policy. Currently, I have AAA and I'm not sure they offer an umbrella plan.
Looks like I may be shopping around.
Again, I really appreciate everyone's input.
April 07, 2018, 10:58 AM
ryan81986quote:
Originally posted by Belgian Blue:
I have heard most umbrella policies require the purchaser to also have home and auto from their company before they will offer an umbrella policy.
Usually, or they'll just surcharge you if you don't.
April 07, 2018, 11:45 AM
Day_latequote:
anyone get it through USAA?
I've got $1M with USAA for about $170 a year.
April 07, 2018, 11:52 AM
TMatsWe’ve got one too. Our attorney recommended getting it when we set up our family trust. I’ll have to get back to you on coverage and cost though.
_______________________________________________________
despite them
April 07, 2018, 02:13 PM
oldRogerI have one with the same company doing my auto insurance. My auto insurance is with a company which does not offer home coverage in my area (special problems with hurricane coverage). Both companies agreed that the umbrella should be with the auto coverage.
It (the umbrella policy) can be thought of as expanding your auto liability. You are far and away more likely to need expanded coverage for auto accident liabilities, unless you have exposure elsewhere involving work or volunteer activities. I expect to see a rider disallowing sexual harassment coverage for any white male on my next policy.
I was able to lower my liability insurance on my vehicles which saves some cost there.
April 07, 2018, 02:22 PM
BB61For those of you with umbrella policies with Allstate, State Farm, Liberty, etc. do you have your primary insurance with them as well? My primary carrier is a local mutual company whose rates are far superior to the national companies. However, to get a 1 million umbrella policy, I’m paying a lot more than you all are quoting and getting it from a separate carrier. However, my umbrella policy is not just liability, it also covers UM and UIM claims as well. Do yours?
__________________________
April 07, 2018, 02:25 PM
BB61quote:
Originally posted by Powers77:
quote:
Originally posted by Rey HRH:
quote:
Originally posted by Powers77:
Here is how you need to think about it assuming you have any assets to protect.
How much skin in the game do you want your insurance company to have? Minimums and you have an incident they cut the check and then you are on your own. $4 million umbrella, they are going to lawyer up and fight like hell. Cheapest insurance you can/should buy.
That would be if they go to trial and lose. But they're going to assess the situation and if it looks like your side will lose, their incentive is to not lose up to their maximum so they will settle for a fraction of their maximum risk. The settlement will cover them not pursuing the matter further.
Your insurance amount should be reflective of how much you're trying to protect, just like car insurance or life insurance.
Agree 100% that the level of the umbrella should reflect what you have to lose. My main point is that an insurance company is more likely to aggressively defend and attempt to settle on your behalf when they also have more at stake. If you have the $100,000 minimum (for example) and they know it's going to blow through that level they will cut a check and have little more to do with it. If they have the $2 million umbrella they will aggressively work the case.
Work for one of the major carriers. Monday is our monthly large loss meeting where we review those cases that have blown up and determine how they should be handled.
Many years of doing this and I'm always amazed at how some seemingly simple situation where many logical folks would not see a financial exposure can rapidly turn to crap.
Are you with State Farm? If so, do you know a married couple (Jamie and Karren)? I saw you were in Vegas so I asked.
__________________________