The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: arebelspy on June 29, 2016, 11:49:25 PM

Title: Umbrella insurance recommendations
Post by: arebelspy on June 29, 2016, 11:49:25 PM
Who do you all use for your umbrella insurance?

Anyone use a separate company from the one that does their homeowners and/or auto?

Cheers!
Title: Re: Umbrella insurance recommendations
Post by: money_bunny on June 30, 2016, 05:09:32 AM
Same company, NJM wants to make sure the homeowners and the auto policies are high enough or they won't issue an umbrella.
Title: Re: Umbrella insurance recommendations
Post by: Enough on June 30, 2016, 07:26:35 AM
I have procrastinated in getting an umbrella policy as I like my old auto insurer and my insurance broker wont issue a policy without having my auto as well as property insurance.
Title: Re: Umbrella insurance recommendations
Post by: hucktard on July 01, 2016, 09:48:12 AM
Arebelspy: Do you just use a umbrella policy, instead of an LLC. I have seen a lot of discussion of LLCs vs Umbrella policies and I don't know what is the best. My father in law insists that I have an LLC (but he is not a real estate investor). It seems like there are a lot drawbacks/complication to having properties in an LLC. What do you think?
Title: Re: Umbrella insurance recommendations
Post by: arebelspy on July 01, 2016, 09:50:55 AM
Arebelspy: Do you just use a umbrella policy, instead of an LLC. I have seen a lot of discussion of LLCs vs Umbrella policies and I don't know what is the best. My father in law insists that I have an LLC (but he is not a real estate investor). It seems like there are a lot drawbacks/complication to having properties in an LLC. What do you think?

I can't speak to which you should do, but I personally use umbrella insurance, and do not (any longer) utilize LLCs for rentals.  Mileage varies wildly on that between people.
Title: Re: Umbrella insurance recommendations
Post by: Secretly Saving on July 01, 2016, 11:14:43 AM
We have our umbrella through the same company that does the rental insurance, personal home, and all vehicles. 
Title: Re: Umbrella insurance recommendations
Post by: dividendman on July 01, 2016, 11:20:32 AM
I got some quotes with GIECO recently. It was about ~100-120 per year for every million of umbrella insurance but you have to have your auto policy through them with certain coverage amounts, and must have homeowners (or renters in my case) with them as well.

I'm probably going with them once I move in a month or so.
Title: Re: Umbrella insurance recommendations
Post by: Another Reader on July 01, 2016, 11:27:20 AM
It's usually less expensive to bundle with your auto and homeowner's insurance.  Many companies won't underwrite an umbrella liability policy without writing the underlying policies.

I have a commercial liability policy because of the number of rentals and dollars involved.  State Farm will write up to $5MM, but above that they refer you to a commercial insurance company.  That's much more expensive and should be shopped through a broker that is knowledgeable about real estate.
Title: Re: Umbrella insurance recommendations
Post by: arebelspy on July 01, 2016, 03:49:26 PM
It's usually less expensive to bundle with your auto and homeowner's insurance.  Many companies won't underwrite an umbrella liability policy without writing the underlying policies.

Yes, this is the problem that I'm running into, now that it's time to renew my Umbrella and I have neither auto or homeowners' insurance anymore.

I was using a company (Personal Umbrella) that didn't require it to be bundled, but they do require SOME form of homeowner's insurance.

Still hoping someone will know of a company that will write one just for rentals... :D
Title: Re: Umbrella insurance recommendations
Post by: Spork on July 01, 2016, 05:42:39 PM
Auto/Home/Umbrella all bundled together with Allstate.  I can't say I love them... but I left Allstate back around November of last year and went with AAA... who promptly dumped me on my ass a couple of months later.  I was in a bind and sleeping on hospital sofas... so I just defaulted back to Allstate because it was quick and easy.
Title: Re: Umbrella insurance recommendations
Post by: Another Reader on July 01, 2016, 07:19:10 PM
You might have to go the commercial liability route.  This is an insurance broker placement, not a policy for your local State Farm or Allstate agent to write.
Title: Re: Umbrella insurance recommendations
Post by: forummm on July 05, 2016, 06:13:02 PM
Maybe call up a big firm like GEICO and ask them what they recommend? It could be they have a special non-owner/renter liability only policy that the umbrella can sit on top of. I had a liability only policy for a property once. Maybe they exist for humans too.
Title: Re: Umbrella insurance recommendations
Post by: jinga nation on July 11, 2016, 09:09:37 AM
I had GEICO Umbrella Insurance but was limited to 4 rental properties.

Wife is AICPA member. Through them, unlimited rental properties. Got $2M coverage for a price less than a GEICO $1M policy.

Our cars are still primary covered through GEICO.
Title: Re: Umbrella insurance recommendations
Post by: dpfromva on July 11, 2016, 09:27:10 AM
I am paying through the nose for Nationwide bundled. They had no problem quickly adding my one rental property to my homeowners, I had to go to a local (to the rental unit) office -- it's in another state, and the agent there just transmitted the info to my hometown agent. Renters insurance was required by me, so I dragged my tenant (my daughter) to the local Nationwide office at the same time.
I'm sure I could piece together something cheaper, but time is money, too, as they say. It's on my to-do list to review for bang for the buck.
Title: Re: Umbrella insurance recommendations
Post by: arebelspy on July 25, 2016, 12:20:41 AM
Bump.

Still haven't solved this one.  :)

t's time to renew my Umbrella and I have neither auto or homeowners' insurance anymore.

I was using a company (Personal Umbrella) that didn't require it to be bundled, but they do require SOME form of homeowner's insurance.

Still hoping someone will know of a company that will write one just for rentals... :D
Title: Re: Umbrella insurance recommendations
Post by: Doubleh on July 25, 2016, 01:58:33 AM
We have all our insurance including umbrella through USAA. But because we live abroad we don't have any traditional home owners insurance, just the insurance on our rental properties.

For car insurance we have a USAA rental car policy that costs something like $50 a year and covers us for driving a friends car or rental when we are in USA, and that was enough for them to provide umbrella cover.

Good experiences with USAA including one claim for flooding, so if you're eligible for membership I'd recommend them. If not I assume other firms must offer a similar low cost minimal auto policy that would meet the requirements for your umbrella.
Title: Re: Umbrella insurance recommendations
Post by: arebelspy on July 25, 2016, 02:30:42 AM
We have all our insurance including umbrella through USAA. But because we live abroad we don't have any traditional home owners insurance, just the insurance on our rental properties.

For car insurance we have a USAA rental car policy that costs something like $50 a year and covers us for driving a friends car or rental when we are in USA, and that was enough for them to provide umbrella cover.

Good experiences with USAA including one claim for flooding, so if you're eligible for membership I'd recommend them. If not I assume other firms must offer a similar low cost minimal auto policy that would meet the requirements for your umbrella.

Ooh, good idea.  Not eligible though, sadly.  :)
Title: Re: Umbrella insurance recommendations
Post by: jinga nation on July 25, 2016, 10:51:57 AM
Are you a member of any professional association? IEEE, AICPA, AMA, ADA, etc? If yes, try getting quotes through their affiliates.

Sometimes it may be worth it to pay the annual dues to join, and get all the goodies you need.

E.g. I renewed my lapsed membership after several years in a professional association, got my membership upped to Senior level, with the help of other members in the local area and fellow employees. Used it, and a competing offer, to get a substantial raise. Now I enjoy reading their technical journals and science articles. I've nominated a co-worker for senior membership.
Title: Re: Umbrella insurance recommendations
Post by: forummm on July 26, 2016, 12:16:02 PM
Bump.

Still haven't solved this one.  :)

t's time to renew my Umbrella and I have neither auto or homeowners' insurance anymore.

I was using a company (Personal Umbrella) that didn't require it to be bundled, but they do require SOME form of homeowner's insurance.

Still hoping someone will know of a company that will write one just for rentals... :D

Did you try...

Maybe call up a big firm like GEICO and ask them what they recommend? It could be they have a special non-owner/renter liability only policy that the umbrella can sit on top of. I had a liability only policy for a property once. Maybe they exist for humans too.

What did they say? They may be able to recommend another firm that does provide that kind of coverage.