Umbrella Policies

April 07, 2018, 02:39 PM

Powers77

Umbrella Policies

quote:
Originally posted by BB61:
quote:
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.

Yes in Vegas and happen to have SF for my homeowners,auto and umbrella. Don't know a Jamie or Karen. Work for another carrier. Keep my insurance elsewhere as I don't want any possible conflict of interest if I'd have a nasty claim.

April 07, 2018, 05:14 PM

CoolRich59

quote:
Originally posted by Powers77:
Cheapest insurance you can/should buy.

+1

The only thing Inwould add is that I think most people buy the minimum coverage for auto. I have $1M coverage for auto and it increased the premium by less than $100 a year.

April 07, 2018, 05:17 PM

CoolRich59

quote:
Originally posted by Belgian Blue: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.

I have AAA. $2M umbrella was $417.

April 07, 2018, 08:49 PM

ragman

I have State Farm and they require 100/300,000 on auto and 500,000 on home in order too get an umbrella. My 1m coverage cost $97.00 a year. It went down $27.00 when my wife died. They must charge per number in household and now it is only one.

April 07, 2018, 10:37 PM

BB61

quote:
Originally posted by Powers77:
quote:
Originally posted by BB61:
quote:
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.

Yes in Vegas and happen to have SF for my homeowners,auto and umbrella. Don't know a Jamie or Karen. Work for another carrier. Keep my insurance elsewhere as I don't want any possible conflict of interest if I'd have a nasty claim.

I know some attorneys who are counsel for Allstate and Farmers respectively. They each have their insurance with another carrier as well for the exact same reason you listed.

April 07, 2018, 11:29 PM

rusbro

I got a $1 million policy years ago, when I started concealed carry, thanks to my discovery of sigforum.com and a discussion similar to this very thread.

April 08, 2018, 06:09 AM

sourdough44

At 1st USAA didn’t like that we had a German Shepherd(she’s pretty friendly).

A few years later they come back and say the dog was O.K.

After the 1st turn town the policy guy said I could increase liability limits on auto & home to compensate some, should I desire.

I’ve most just hung with standard auto & home coverage.

April 08, 2018, 08:55 PM

Belgian Blue

quote:
Originally posted by CoolRich59:
quote:
Originally posted by Belgian Blue: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.

I have AAA. $2M umbrella was $417.

Thanks for the input! I'll check into it.