Community Chat

[Jordan2]

I have my car, homeowners, and umbrella ( which I get through someone else because Allstate doesn't write them they arranged it for me) insurance policies from Allstate. They are renewing in August. I just wonder if most people get the umbrella policy and is it really necessary? I don't know what it really is, I know it gives you more coverage in case someone sues you.

[kitty60]

It really depends on your financial situation.  It generally gives you greater limits of protection than each individual policy.  Just try to protect your assets.

[chickenbutt]

Unless something has changed since i was licensed, an umbrella policy is strictly liability.

So, if you have a huge amount of assets to protect, beyond what protection you have with your auto and homeowner policies, than an umbrella is for you.

When I wrote them, they started at one million dollars of coverage and most of them were higher.    Those were written for insureds who were quite wealthy and had a lot of assets to protect, which is the point.

[Skididdy]

@Jordan2, I can help you out with this one.

The Umbrella liability policy is strictly liability over and above your auto , home, boat, ect. 

So if you are sued, say for a car accident and they win, they exhaust your limits on that car policy and then get the rest from your umbrella policy.

I personally think it is a great thing.  Everyone is SUE happy , for the additional cost, it is peace of mind. 

The umbrella policy has nothing to do with personal property....it is only liability coverage as someone mentioned.

I hope this helps you.

[Mistreatedbycs]

You might want to have everything quoted by State Farm, they write the Umbrella polices and here's what I know.

I own a business and my attorney told me it's "a really good idea" to have a million dollar umbrella policy since the world is full of people who just "sue".

I have my business insurance with another company and my agent for my business building told me even if I don't have a business, it's a good thing to have, someone falls on your sidewalk, you hit someone in your car.  Although your car insurance will probably take care of that claim, an umbrella policy gives you added security incase you do run into someone who wants to take your house, your bank account etc.  

Mine cost around $100 and for me, I am happy to pay that.

On a side note I just wanted to share incase you are reviewing your policies.

My agent came in yesterday and mentioned he wrote a homeowners policy for a couple who had their insurance through AARP, he mentioned their policy had a $5000 deductible and he got them the same premium with a $1000 deductible.  All these little details, who would of thought insurance is so complicated and necessary when that time comes.

[novamc1]

DH and I have kept umbrella policies in effect for years.  Too afraid of potential consequences if we did not have them. 

They are part of our insurance package that includes homeowner and auto insurance.  I believe all insurance companies can write these types of policies.

They don't cost much, considering how much they can protect. 

Highly recommend them.

[sunshine45]

yes, we have an umbrella policy.

would not be without it.

[151949]

My DH was in outside sales and worked many years on the road. His company required him to carry an umbrella policy and they paid the premium so we always had one. After he retired we just kept it up.

My parents died in an auto accident. It's complicated but ultimately the person who was found to be at fault in the accident ( because he was drunk & high) tried to sue my DH & I. My lawyer said it was because of the umbrella policy. They thought they could cash into some big bucks because we had that. The insurance co. sent us to their attorney and he handled everything. In the end the judge threw out the case because it had no basis - they filed it again and the new judge threw it out again. They filed a third time and the same judge from the second filing said if they continued to harass us with these base less lawsuits he was going to file charges against their lawyer. Anyway - our lawyer said if we did not have that multimillion dollar umbrella policy they never would have tried this.

[kitty60]

The cost can vary depending on your family. When my son was a teenager our umbrella was considerably higher as they consider that a risk.  I agree, now with just the two of us it wouln't be worth not getting it.

[Happiness Is Inside JOB]

I have an umbrella policy and it is for 1 million and cost around 125.00 per year.  I have allstate and about 3 years ago hubby was in an accident during a eastern snow storm.  Well the person got a lawyer and claimed they had 5000.00 worth of xmas gifts and a whole lot of other things.

It was a small fender bender, no one was "HURT" at the time but after the accident, it was "SO MANY INJURIES".  I only found out the final settlement for one person was 9000.00 but the other passenger was going for big bucks.

I got the umbrella policy and we may NEVER USE IT but I know his auto coverage was around 300,000 per person (off top of my head) so if the settlement is more than that... YOU have to find the money.

I did not want to be in a situation where I had to cash our TSP or even have the drama.

Also, his coworker's daughter hit a jogger and he died.  His insurance coverage did not cover the settlement.  He ended up trying to borrow money but I never heard the final details as he left my hubby job.  The daughter ended up going to JAIL.

For me, I had a fire back in 2008 and I learned it is BETTER to have the coverage and don't NEED it.  Then need it and don't have it.

Also, make sure you have the "REPLACEMENT" coverage clause added to your home owners policy. THat saved US, otherwise you get the depreciated value only.  We had replacement and that helped us dramatically.

When you have drama in your life via a fire or accident, what gives you peace is the coverage you have.  The fire was the most stressful event in my life, but it made me know the value of INSURANCE and my HUBBY.  Both are priceless.