What's new
Fantasy Football - Footballguys Forums

Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.

Umbrella policy, any FBGs carry one? (1 Viewer)

D

DallasDMac

Footballguy
Got an email from my insurance company the other day to get a quote and I did (you have to have both home and auto with them for them to issue a policy so that is likely what triggered the offer). Started reading articles after googling "Who should have an umbrella policy?" and honestly, they seem to make a lot of sense for my wife and I. So I was wondering:

How many folks have one?

When/what made you decide to get it?

How much protection do you carry,  the one closest to your net worth, or the one that is the next step above your current net worth? (Can disregard if these happen to be equal. Mine would not)

 
I just got rid of mine.  I had a boat and needed to carry $1M policy as part of requirement for access on our private lake.  I sold the boat this season, and thus rid myself of the umbrella.

 
We got an umbrella policy once we bought a house and had some other assets. I think it's a million policy and was like 200 a year. Maybe a bit more, but very reasonable. 

Edited to add: out net worth could be negative given some debt we have, but we earn enough that it would be worthwhile for somebody to sue us, which is really why we bought the policy.

 
Last edited by a moderator:
Walking Boot said:
Once I had assets > 500k, I got a million for like $200/yr

Total no-brainer. Completely worth it if you have anything you want to protect.

I think the rule of thumb is double-net-worth.
Click to expand...
Thanks, had not seen the bolded. I think the quote for mine was about double of yours but still not to bad all things considered.

And thanks to all for the feedback.

 
Yeah, if you own your home, have any sort of assets to protect or have people (especially kids) over at your place on any sort of consistent basis, you're a fool if you dont.

They're insanely cheap for what you get. All it takes is the wrong person falling down your stairs, stepping in a hole in your lawn, getting hit by your car, whatever to force you into bankruptcy.

 
TLEF316 said:
Yeah, if you own your home, have any sort of assets to protect or have people (especially kids) over at your place on any sort of consistent basis, you're a fool if you dont.

They're insanely cheap for what you get. All it takes is the wrong person falling down your stairs, stepping in a hole in your lawn, getting hit by your car, whatever to force you into bankruptcy.
Click to expand...
Pretty much this.   Mine is like $228 per year for $1M in coverage.   My ex-wife originally got it but I just decided to keep it when we got divorced since its so cheap and I like not having to worry about stuff.  

 
Yes. We own 2 businesses, have 3 LLCs, a few other assets in a separate trust... 

Umbrella over us personally even with the corporations makes sense. 

 
D-Day said:
If you get an umbrella, make sure you extend your Uninsured/Under Insured Motorist Bodily Injury coverage to the policy.  
Click to expand...
Excellent advice, assuming your carrier allows it.

 
Last edited by a moderator:
Yes, and have had it hit for a large chunk (settlement) due to an auto accident that wasn't our fault but the terrible laws in our State still put us in the position to get sued for a huge amount. We would have lost everything but our primary residence if we didn't have that policy and it went to court and we lost.

I often wonder if having it made us more of a target...in the sense that had we not had it I would never have settled. I couldn't have. It has to be easier for the personal injury lawyers to negotiate with an insurance company than take a case to trial.

 
notoriousbill said:
I hate to sound ignorant (but I will), what exactly do you mean?  
Click to expand...
Uninsured / Under Insured Motorist (UMBI) covers in the case where the other party is at fault in an accident, and they don't have any, nor enough coverage to pay for your injuries, your lost wages, and your pain & suffering.  If you are going to cover the other person for $1 million, why not have that protection for you in case the other person is at fault.

It doesn't mean you will collect that amount, but it at least gives you someone to sue with deep pockets (your insurance company).  

Last time I heard, the statistic of uninsured drivers was 1 in 6 (16%).  Think of the % of drivers who only carry minimum coverage.  30% maybe?

 
Would appreciate a company recommendation in here for this sort of policy.  Also I should probably add another life policy.  

Thanks!

 
Ive heard of the term but honestly not 100% familiar with its purpose.

Can you guys give me examples on why its beneficial?

I have home and auto with AAA

I dont like insurance companies or the need for it but i do like reassurance and value.

 
Last edited by a moderator:
comfortably numb said:
Ive heard of the term but honestly not 100% familiar with its purpose.

Can you guys give me examples on why its beneficial?

I have home and auto with AAA

I dont like insurance companies or the need for it but i do like reassurance and value.
Click to expand...


I just stole this example from a quick Google search, but it gives a easy to understand example of why you might want an umbrella policy. 

Here's one situation where your umbrella liability may provide the extra coverage you need in a claim. You just went out and got a new drone, luckily you have insurance for $1,000,000 for liability for the drone because while you're practicing flying it spins out of control and hits a neighbor. The injury they sustain is going to affect them in such a way they can not do their job. You get sued for damages, your primary liability could cover up to $1,000,000. Imagine that this person was a surgeon, and they lost part of their vision, or proper control of their hand, due to this injury.

You could be on the line for a lot more than $1,000,000. Umbrella liability would kick in after the primary liability limit is reached.

https://www.thebalance.com/why-every-policyholder-needs-umbrella-insurance-2645466
Click to expand...
Couple of other real world examples are here: here

 
Last edited by a moderator:
comfortably numb said:
Ive heard of the term but honestly not 100% familiar with its purpose.

Can you guys give me examples on why its beneficial?

I have home and auto with AAA

I dont like insurance companies or the need for it but i do like reassurance and value.
Click to expand...
If you cause a 20 car pile up on the interstate your $500000 in liability isn’t going to cover you

 
BassNBrew said:
Yes. 2 milky. Much better protection and cheaper than an Llc if you have rental properties 
Click to expand...
This is only partially true as I found out.  The umbrella will cover the rental properties up to the coverage amount, anything over that they will be subject to if they are owned by the same person who is being sued.  Best to have an umbrella and hold them in an LLC as well to prevent any excess liability from a personal matter from impacting the rental properties.

 
D-Day said:
Uninsured / Under Insured Motorist (UMBI) covers in the case where the other party is at fault in an accident, and they don't have any, nor enough coverage to pay for your injuries, your lost wages, and your pain & suffering.  If you are going to cover the other person for $1 million, why not have that protection for you in case the other person is at fault.

It doesn't mean you will collect that amount, but it at least gives you someone to sue with deep pockets (your insurance company).  

Last time I heard, the statistic of uninsured drivers was 1 in 6 (16%).  Think of the % of drivers who only carry minimum coverage.  30% maybe?
Click to expand...
I just contacted my insurance broker.  I am good on this.  She was very intrigued by the question because apparently when I set all of my insurance up, I requested this type of coverage (even sent me the initial request, lol)....   Sucks getting old....  

 
Walking Boot said:
IIRC, your umbrella pretty much has to be issued by the company that does your homeowner's insurance. 

In my case, my actual homeowner's insurance company wouldn't directly issue to policy due to a zoning issue, but they contracted me out to a carrier they work with directly to cover me.
Click to expand...
interesting.  Thanks.

 
I never carry umbrellas. Whenever I leave a building there's usually a whole bunch of free ones by the door.

 
D-Day said:
If you get an umbrella, make sure you extend your Uninsured/Under Insured Motorist Bodily Injury coverage to the policy.  
Click to expand...
My agency made me up some current coverage has to qualify for the umbrella. I can't remember if it was bumping liability to collision with higher caps what but that can be a factor

 
I've got a $1m umbrella policy. As others have said, it's cheap peace of mind. As far as cost, I'd have to look but I think it's in the range posted above.

 
Ron Swanson said:
This is only partially true as I found out.  The umbrella will cover the rental properties up to the coverage amount, anything over that they will be subject to if they are owned by the same person who is being sued.  Best to have an umbrella and hold them in an LLC as well to prevent any excess liability from a personal matter from impacting the rental properties.
Click to expand...
Bump the umbrella.

 
cosjobs said:
My agency made me up some current coverage has to qualify for the umbrella. I can't remember if it was bumping liability to collision with higher caps what but that can be a factor
Click to expand...
I think my coverage is what drives the premium. i.e. If I have $300,000 on the other driver, than my premium is $x. If I have the other driver covered for $500k, then the umbrella has less to cover so premium is lower. Like I said, my insurance company will only offer umbrella policies to those that have both home and auto with them. That is because they need to know exactly what they are covering. They were very up front about that.

Once again, thanks for all the feedback. Much appreciated.

 
Ron Swanson said:
Yes, and have had it hit for a large chunk (settlement) due to an auto accident that wasn't our fault but the terrible laws in our State still put us in the position to get sued for a huge amount. We would have lost everything but our primary residence if we didn't have that policy and it went to court and we lost.

I often wonder if having it made us more of a target...in the sense that had we not had it I would never have settled. I couldn't have. It has to be easier for the personal injury lawyers to negotiate with an insurance company than take a case to trial.
Click to expand...
I think you might be right.  I had a client who was in a car accident, a car hit someone really hard, sent their smashed car into the opposite lane, and my client ended up hitting that car, albeit not very hard.  The passenger in the car that was hit died, and the driver ended up suing.  The guy who caused the accident had no insurance and was a deadbeat, so they went after my client.  The insurance company ended up settling for $750,000.  His auto limit was $300,000, but he had a $2M umbrella which took care of the rest.  I don't understand why the insurance company even settled, but regardless my client didn't have to worry about it.

tldr: Everyone with assets should have one, and they happen to be dirt cheap.

 
Yes, and everyone should have one, especially if you have teenage kids driving. You can be sued for damage they do.

My daughter was driving down the freeway and traffic slowed and she didn’t. She hit the car in front of her going 50. She sent 5 people to the hospital and almost killed one of them. 

We have a $3M Umbrella and max auto insurance. The damage from the accident was $750k. The auto insurance covered $500k and the umbrella covered the other $250k.

Get an umbrella policy if you don’t have one.

 
kutta said:
Yes, and everyone should have one, especially if you have teenage kids driving. You can be sued for damage they do.

My daughter was driving down the freeway and traffic slowed and she didn’t. She hit the car in front of her going 50. She sent 5 people to the hospital and almost killed one of them. 

We have a $3M Umbrella and max auto insurance. The damage from the accident was $750k. The auto insurance covered $500k and the umbrella covered the other $250k.

Get an umbrella policy if you don’t have one.
Click to expand...
Did your premium change after using the umbrella?

 
My umbrella was cheap until I added another driver. I knew the auto insurance was going to skyrocket (almost double) but just hadn't thought about the umbrella also increasing. Makes sense that it would, just hadn't thought about it. It's around $300 for a million now.

 
Uruk-Hai said:
Did your premium change after using the umbrella?
Click to expand...
Well, the company dropped us and we got another one. My daughter’s driving record is really bad so we couldn’t put her on the new one so it’s just my wife and I now.

 
I have one too. Too cheap to not protect yourself like this. Anyone that has some means needs to cover themselves because of the litigious nature of the country. 

 
kutta said:
Well, the company dropped us and we got another one. My daughter’s driving record is really bad so we couldn’t put her on the new one so it’s just my wife and I now.
Click to expand...
“Help me Elon Musk, you’re my only hope”

 
Our kids are all grown and out of the house, which is why I finally have assets to worry about. But it today's litigious society, I agree, it certainly makes sense.

Edit to add, I may bump the deductible on the autos in order to cover the umbrella. I'll have to look and see if that is worth it. I honestly forget what the deductible is now.

 
Last edited by a moderator:
Ok, so it cost a little more than I thought because I had to up the coverage on the auto. I think I had $100,000/$300,000 and they required $300,000/$500,000 before they would issue the policy. This may well be industry standard? But, it is done.

 
-OZ- said:
My umbrella was cheap until I added another driver. I knew the auto insurance was going to skyrocket (almost double) but just hadn't thought about the umbrella also increasing. Makes sense that it would, just hadn't thought about it. It's around $300 for a million now.
Click to expand...
About what I pay.  Teenage boy doesn't help my risk profile.

Jobber said:
Same. Three kids who have friends over and a tramp in the back yard.
Click to expand...
The result of that could cost a boatload, and there is no insurance I'm aware of to cover that cost...

DallasDMac said:
Ok, so it cost a little more than I thought because I had to up the coverage on the auto. I think I had $100,000/$300,000 and they required $300,000/$500,000 before they would issue the policy. This may well be industry standard? But, it is done.
Click to expand...
That is consistent with what I had to do.

 
Last edited by a moderator:
kutta said:
Well, the company dropped us and we got another one. My daughter’s driving record is really bad so we couldn’t put her on the new one so it’s just my wife and I now.
Click to expand...
Have you stopped her from driving?  I feel like this is thread worthy on its own. 

 
You must log in or register to reply here.

Similar threads

Chemical X
Home-Owners Insurance Spike
Replies
44
Views
871
bcat01
B
C
Health Insurance Cost Question
Replies
1
Views
242
belljr
belljr
C
Tax Advice for Son
Replies
2
Views
265
eoMMan
E

Users who are viewing this thread

Total: 2 (members: 0, guests: 2)
Top