Money Matters

I just got umbrella insurance ( or is it "an umbrella policy"?)

This was one of the things on the Financial Planner's to-do list for us. My very lay understanding is that it is general liability coverage in case any of your item-specific coverages are insufficient -- say, my auto insurance only covers up to $500,000, and I cause a wreck and am sued for $800,000, then the umbrella policy kicks in.

Or say someone falls down the stairs at my house and sues me for more than whatever limit is in my  homeowners' insurance, then the umbrella policy kicks in.

I am not 100% sure that we needed this (so whoever was flaming people for being uninformed consumers yesterday, take note), but it's $11/mo for $1 million in coverage, and the FP recommended it, and I'm willing to risk $11/mo that he's right.

Just random sharing!

Mama to 2 late-term preemies (7/10 & 11/12) due to HELLP Syndrome.

Re: I just got umbrella insurance ( or is it "an umbrella policy"?)

  • Good job!

    If you haven't already, make sure that it includes your uninsured and underinsured motorist coverage. It might cost a little more to make it include those things, but I want my family and the passengers in my car to have as much access to benefits if we're hit by someone with no or bad insurance as those that we may hit have.

  • Great job!

    My $1M umbrella insurance costs $119/year. It is money well spent for peace of mind.

    And Tosa has a great point. I have a friend who was just in a car accident (not her fault). The person who hit her had the state's minimum liability insurance (nothing else) and the minimum was not enough to pay for the damage to her car and the other car that got hit by the underinsured motorist. (3 car accident). 

    imageimage
    Trains Across America
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  • That's great.  I've been meaning to do this. It might also cover you in some work situations...like if you get sued for something at work, a lawyer representing you from your workplace may want to settle to just get the issue resolved, so you might want your own counsel and know you're covered.  My friend has it and it covers slander, so he says he feels more free to run around telling people what he really thinks, LOL.
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  • image dr.girlfriend:
    That's great.  I've been meaning to do this. It might also cover you in some work situations...like if you get sued for something at work, a lawyer representing you from your workplace may want to settle to just get the issue resolved, so you might want your own counsel and know you're covered.  My friend has it and it covers slander, so he says he feels more free to run around telling people what he really thinks, LOL.

    Actually the bank person was telling me that it does cover slander and libel and that with the internet and social media, they're seeing more of those claims than in the past. She said that after 12:01 tonight I can say anything I want. Stick out tongue

    Mama to 2 late-term preemies (7/10 & 11/12) due to HELLP Syndrome.
  • It also pays to defend you in lawsuits for things that are resulting from your home or car or other personal type liability, which is huge, even if they don't win anything.  I am not sure, at least here, that other types of coverages will defend you. 
  • image JOEBunny:
    It also pays to defend you in lawsuits for things that are resulting from your home or car or other personal type liability, which is huge, even if they don't win anything.  I am not sure, at least here, that other types of coverages will defend you. 

    Oh, right -- that too! You can see that I retained approximately 10% of the conversation that I had with her. But yes, she specifically mentioned this.

    Mama to 2 late-term preemies (7/10 & 11/12) due to HELLP Syndrome.
  • In general, if you are sued as a result of an auto accident or HO liability situation, your primary policies will provide/pay for your defense.  You don't need an umbrella/excess policy to pay for that. 

  • image Reysgirl:

    In general, if you are sued as a result of an auto accident or HO liability situation, your primary policies will provide/pay for your defense.  You don't need an umbrella/excess policy to pay for that. 

    Right your primary policy pays for defense but doesn't pay for a verdict that's more than your policy limits..that's where the umbrella policy would come into play. Also, if it's a large case and both your underlying and umbrella policy is going to come into play both typically provide a defense and work together.

    Also you still want to be careful regarding reporting simple claims (i.e. 1 veh accident where there's no damage to your car) because every year when your policy comes up for renewal most companies will look at your claims history, driving history, etc before agreeing to renew you.

  • image aallenba:
    image Reysgirl:

    In general, if you are sued as a result of an auto accident or HO liability situation, your primary policies will provide/pay for your defense.  You don't need an umbrella/excess policy to pay for that. 

    Right your primary policy pays for defense but doesn't pay for a verdict that's more than your policy limits..that's where the umbrella policy would come into play. Also, if it's a large case and both your underlying and umbrella policy is going to come into play both typically provide a defense and work together.

    Also you still want to be careful regarding reporting simple claims (i.e. 1 veh accident where there's no damage to your car) because every year when your policy comes up for renewal most companies will look at your claims history, driving history, etc before agreeing to renew you.

    All of this. Everyone should get an umbrella.  

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  • image Reysgirl:

    In general, if you are sued as a result of an auto accident or HO liability situation, your primary policies will provide/pay for your defense.  You don't need an umbrella/excess policy to pay for that. 

    While that's true, one of the best arguments I've heard for carrying umbrella insurance is that the more insurance you carry, the more the insurance companies will be compelled to provide a good defense on your behalf.  If the insurance company is only on the line for the bare minimum, then they don't care as much.  We just recently upped our umbrella policy to $5M because that way, they're even more inclined to provide a good defense for us if something happens (also because I am a huge worry wart and want to be able to sleep peacefully at night, and with $5M I can). 

    To the OP - you made a very smart decision to get an umbrella policy!

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  • While you don?t need to be wealthy to need umbrella insurance, many high net worth individuals like to have umbrella insurance. If people know that you are ?rich,? they might be more inclined to sue you for larger amounts. If you have a large amount of assets, and if you aren?t shy about showing it, you could find yourself in an expensive situation. Umbrella insurance can reduce your risk. Another thing to keep in mind is whether or not you have a number of liability risks. If there are more chances for others to get hurt because of your property, umbrella insurance can help you protect your assets.

     

    what is liability insurance 

     

     

     

  • image herrin:

    While you don?t need to be wealthy to need umbrella insurance, many high net worth individuals like to have umbrella insurance. If people know that you are ?rich,? they might be more inclined to sue you for larger amounts. If you have a large amount of assets, and if you aren?t shy about showing it, you could find yourself in an expensive situation. Umbrella insurance can reduce your risk. Another thing to keep in mind is whether or not you have a number of liability risks. If there are more chances for others to get hurt because of your property, umbrella insurance can help you protect your assets.

     

    what is liability insurance 

     

     

     

    I was all excited to have a new  reply, because I'm nerdy like that. And then it was spam. Boo.

    And: Reported.

    Mama to 2 late-term preemies (7/10 & 11/12) due to HELLP Syndrome.
  • $11/month on excess insurance won't really hurt your budget so I think you made a great decision to invest your money in that type of coverage. I'll try to check this kind of policy if it is available here, seems like a good investment too.
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