Liability Insurance Advice? (1 Viewer)

[Henry Ford]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

 

[Officer Pete Malloy]

Just keep your 8-year old in line and you should be OK.

 

[Henry Ford]

Just keep your 8-year old in line and you should be OK.

Quiet, you.

 

[xulf]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

 

[Henry Ford]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

Just a very active 8-year-old who loves to hug his aunt.

 

[SWC]

do not worry anyone other than an attorney knows that eight year olds are untouchable in court take that to the bank

 

[Henry Ford]

I can see this was a smart topic to start. Thanks.

 

[xulf]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

Just a very active 8-year-old who loves to hug his aunt.

It was a serious question. Your umbrella insurance might be too low if they are of driving age and assuming you make a nice salary...

 

[Bucky86]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

Just a very active 8-year-old who loves to hug his aunt.

It was a serious question. Your umbrella insurance might be too low if they are of driving age and assuming you make a nice salary...

Henry Ford is a tremendous success.

 

[Ditkaless Wonders]

So if you get hit with a judgment for $995,000 how much does your insurance pay, and how much comes from you?

 

[Henry Ford]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

Just a very active 8-year-old who loves to hug his aunt.

It was a serious question. Your umbrella insurance might be too low if they are of driving age and assuming you make a nice salary...

Gotcha. I'm not so much concerned with the umbrella limits, but the weird addition of a stand alone general comprehensive personal liability policy instead of upping my homeowners. It was pointed out to me in another thread that it's unlikely that I have only $125 in homeowners and an umbrella policy, which is how I got this figured out.

 

[Henry Ford]

Rather than muddy up the thread I've already muddied up about this.

I just discovered my insurance agent has me with:

1. Homeowner's insurance policy with a $125,000 personal liability limit

2. $300,000 in stand alone comprehensive personal liability coverage

3. $1m umbrella policy.

Have you ever heard of this setup before, does this seem legit in any way to you, and am I just wasting money, or does this sound... significantly weirder than it should be?

#2 is a policy I was truly unaware of until less than an hour ago. That doesn't mean it hasn't been around for several years, I just don't remember it at all, and somehow don't have the documents saved in my "important stuff" scans I keep on my emergency flash drive.

I don't know how that happened or when it went into effect, but there's a chance it's been around some time - anywhere up to several years.

Does anyone have any thoughts on this? I'm trying to see if there's a good reason for this, or even if it's a thing.

Do you have any kids?

Just a very active 8-year-old who loves to hug his aunt.

It was a serious question. Your umbrella insurance might be too low if they are of driving age and assuming you make a nice salary...

Henry Ford is a tremendous success.

Depends on how you measure success, I guess.

 

[Henry Ford]

On a side note, my insurance agent was audibly strange during this discussion. And I don't have my policies in front of me, only dec sheets.

 

[Henry Ford]

And since Ookie is here, many thanks to Ookie Pringle, who has shown me I'm apparently an idiot with respect to my own insurance policies.

 

[Officer Pete Malloy]

Why would anybody insure an umbrella?

 

[Henry Ford]

Why would anybody insure and umbrella?

I'm actually the Penguin. It's a very important umbrella.

 

[Johnny Rock]

I've never seen the extra policy either. Is it listed on your premium breakdown going back years?

Is the second policy more expensive per thousand than upping the HO?

Agent should be able to produce all the docs. Interested to hear what comes of it.

If all things are equal I guess you need to decide how much total liability coverage you have. In that respect it doesn't hurt to revisit all your limits and deductibles.

 

[Henry Ford]

I've never seen the extra policy either. Is it listed on your premium breakdown going back years?

Is the second policy more expensive per thousand than upping the HO?

Agent should be able to produce all the docs. Interested to hear what comes of it.

If all things are equal I guess you need to decide how much total liability coverage you have. In that respect it doesn't hurt to revisit all your limits and deductibles.

Soon as I get home, I'm looking at the premium breakdowns. I'm sure this is just something weird that I don't remember. Sucks getting old.

 

[Johnny Rock]

I've never seen the extra policy either. Is it listed on your premium breakdown going back years?

Is the second policy more expensive per thousand than upping the HO?

Agent should be able to produce all the docs. Interested to hear what comes of it.

If all things are equal I guess you need to decide how much total liability coverage you have. In that respect it doesn't hurt to revisit all your limits and deductibles.

Soon as I get home, I'm looking at the premium breakdowns. I'm sure this is just something weird that I don't remember. Sucks getting old.

Meant to say: If all things are equal I guess you need to decide how much total liability coverage you WANT.

 

[Henry Ford]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

 

[xulf]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

 

[facook]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

If your homeowner policy has liability, ditch #2 and (most likely) get #3 through the same company insuring your home. Optimally, this would be the same company insuring your autos and you can bundle auto/home/umbrella and save money overall while getting better liability coverage. I think you're an attorney, if I remember right. If so, $1 million liability would be the lowest you'd want to go (to protect assets and future income. I recommend $3 or $5 million to my attorney clients.

ETA: Also, tell him to back date cancellation of #2 to the date he sold you the homeowner policy that DID have personal liability. He's been bilking you for double premium that whole time.

Then, get a new agent.

 

[gianmarco]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

If your homeowner policy has liability, ditch #2 and (most likely) get #3 through the same company insuring your home. Optimally, this would be the same company insuring your autos and you can bundle auto/home/umbrella and save money overall while getting better liability coverage. I think you're an attorney, if I remember right. If so, $1 million liability would be the lowest you'd want to go (to protect assets and future income. I recommend $3 or $5 million to my attorney clients.

ETA: Also, tell him to back date cancellation of #2 to the date he sold you the homeowner policy that DID have personal liability. He's been bilking you for double premium that whole time.

Then, get a new agent.

 

[EYLive]

Ask for a full copy of your policy. Read it.

 

[Henry Ford]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

If your homeowner policy has liability, ditch #2 and (most likely) get #3 through the same company insuring your home. Optimally, this would be the same company insuring your autos and you can bundle auto/home/umbrella and save money overall while getting better liability coverage. I think you're an attorney, if I remember right. If so, $1 million liability would be the lowest you'd want to go (to protect assets and future income. I recommend $3 or $5 million to my attorney clients.

ETA: Also, tell him to back date cancellation of #2 to the date he sold you the homeowner policy that DID have personal liability. He's been bilking you for double premium that whole time.

Then, get a new agent.

Yeah the issue - as was brought up in the other thread and made me realize something is off, is that I need 300 in liability to even get an umbrella policy. So I need him to push the homeowners up and get rid of the other liability. And then fire him.

 

[facook]

Okay, I found when I got this policy. And why it isn't connected to my homeowners (or at least why it wasn't)

I was initially insured by the insurer of last resort in Louisiana, LCPIP, with the Louisiana Citizens FAIR plan. Which doesn't have liability coverage at all. The homeowners is being paid through escrow and I wanted liability and umbrella, so they purchased me a general liability policy (through one insurer, where apparently everybody who uses LCPIP gets their liability coverage) and then an umbrella coverage over that.

Then a new insurer got into the market here, and my agent switched me to that insurer. It has liability. Mortgage company paying that through escrow.

Agent continues to hold my two liability policies separately, and I've been paying on both forever. That's as far as I've gotten.

If your homeowner policy has liability, ditch #2 and (most likely) get #3 through the same company insuring your home. Optimally, this would be the same company insuring your autos and you can bundle auto/home/umbrella and save money overall while getting better liability coverage. I think you're an attorney, if I remember right. If so, $1 million liability would be the lowest you'd want to go (to protect assets and future income. I recommend $3 or $5 million to my attorney clients.

ETA: Also, tell him to back date cancellation of #2 to the date he sold you the homeowner policy that DID have personal liability. He's been bilking you for double premium that whole time.

Then, get a new agent.

Yeah the issue - as was brought up in the other thread and made me realize something is off, is that I need 300 in liability to even get an umbrella policy. So I need him to push the homeowners up and get rid of the other liability. And then fire him.

Exactly right.

 

[Doctor Detroit]

$1 million in umbrella insurance is obligatory IMO.

The rest is up for debate, but our OP is a bit convoluted and unintelligible. Calm down, you built a automotive giant and you're flailing like the Russians on shooting down that airplane in the Ukraine.

 

[Henry Ford]

$1 million in umbrella insurance is obligatory IMO.

The rest is up for debate, but our OP is a bit convoluted and unintelligible. Calm down, you built a automotive giant and you're flailing like the Russians on shooting down that airplane in the Ukraine.

Sorry, was having a complete panic attack when I wrote that.

Here's the situation. I had (I thought) homeowners with $125 and an umbrella policy over that. During a discussion on this board with what I assume is an insurance professional, it was made clear to me that isn't possible. At which point I got my agent on the phone, he sounded weird while telling me I had:

Homeowners with $125

A general liability policy, stand alone, with $300

And then on top of that my umbrella.

My question was "why the #### would I have a stand alone general liability policy as a bridge between my homeowners and the amount I need for an umbrella policy? Has anyone seen this before? Does that sound legitimate, or is this guy covering up for something?"

It turns out, I had an insurance without liability coverage on my last home, and this one before I got insurance from a newer insurance company. And there was a minor mixup about the transfer over. I am no longer having quite as much of an attack as i was prior to figuring out (sort of) what happened.

 

[Ookie Pringle]

And since Ookie is here, many thanks to Ookie Pringle, who has shown me I'm apparently an idiot with respect to my own insurance policies.

No problem and I agree you need a new agent. Find an independent agent that represents several companies and see what options they can find for you. Also get some optional quotes for higher umbrella limits. Good luck!

 

[Gianni Verscotchie]

$1 million in umbrella insurance is obligatory IMO.

The rest is up for debate, but our OP is a bit convoluted and unintelligible. Calm down, you built a automotive giant and you're flailing like the Russians on shooting down that airplane in the Ukraine.

Sorry, was having a complete panic attack when I wrote that.

Here's the situation. I had (I thought) homeowners with $125 and an umbrella policy over that. During a discussion on this board with what I assume is an insurance professional, it was made clear to me that isn't possible. At which point I got my agent on the phone, he sounded weird while telling me I had:

Homeowners with $125

A general liability policy, stand alone, with $300

And then on top of that my umbrella.

My question was "why the #### would I have a stand alone general liability policy as a bridge between my homeowners and the amount I need for an umbrella policy? Has anyone seen this before? Does that sound legitimate, or is this guy covering up for something?"

It turns out, I had an insurance without liability coverage on my last home, and this one before I got insurance from a newer insurance company. And there was a minor mixup about the transfer over. I am no longer having quite as much of an attack as i was prior to figuring out (sort of) what happened.

For a smart guy, you're a moron. How could you possibly buy a homeowners policy without liability??

Most Umbrella policies have a minimum underlying liability requirement. Usually, $250-$300,000 in liability coverage is required on each of your home and auto policies before you can buy an Umbrella.

Your agent may have got you that bridge policy because either 1) it was cheaper than increasing your homeowners limits or 2)The homeowner carrier only writes $125k policies.

You should ask him what the benefit of having the bridge policy is compared to simply increasing the liability limits of your homeowners policy.

 

[matttyl]

On a side note, my insurance agent was audibly strange during this discussion. And I don't have my policies in front of me, only dec sheets.

Never trust insurance agents. All of them are shady folks.

 

[James Daulton]

Maybe go check with a lawyer? I hear they don't all suck.

 

[Henry Ford]

On a side note, my insurance agent was audibly strange during this discussion. And I don't have my policies in front of me, only dec sheets.

Never trust insurance agents. All of them are shady folks.

I would slap my clients if they were as lax as I've been with this. "Physician, heal thyself" and all that.

 

[Henry Ford]

$1 million in umbrella insurance is obligatory IMO.

The rest is up for debate, but our OP is a bit convoluted and unintelligible. Calm down, you built a automotive giant and you're flailing like the Russians on shooting down that airplane in the Ukraine.

Sorry, was having a complete panic attack when I wrote that.

Here's the situation. I had (I thought) homeowners with $125 and an umbrella policy over that. During a discussion on this board with what I assume is an insurance professional, it was made clear to me that isn't possible. At which point I got my agent on the phone, he sounded weird while telling me I had:

Homeowners with $125

A general liability policy, stand alone, with $300

And then on top of that my umbrella.

My question was "why the #### would I have a stand alone general liability policy as a bridge between my homeowners and the amount I need for an umbrella policy? Has anyone seen this before? Does that sound legitimate, or is this guy covering up for something?"

It turns out, I had an insurance without liability coverage on my last home, and this one before I got insurance from a newer insurance company. And there was a minor mixup about the transfer over. I am no longer having quite as much of an attack as i was prior to figuring out (sort of) what happened.

For a smart guy, you're a moron. How could you possibly buy a homeowners policy without liability??

Most Umbrella policies have a minimum underlying liability requirement. Usually, $250-$300,000 in liability coverage is required on each of your home and auto policies before you can buy an Umbrella.

Your agent may have got you that bridge policy because either 1) it was cheaper than increasing your homeowners limits or 2)The homeowner carrier only writes $125k policies.

You should ask him what the benefit of having the bridge policy is compared to simply increasing the liability limits of your homeowners policy.

At the time - when I initially bought the FAIR plan policy - it was the only policy available to me as I recall. That's why they exist in the first place. They're an insurer of last resort. You may remember, the homeowner's insurance industry ran the #### away from south Louisiana after some big thing happened. I think it made the news.

A lot of people were left with no other options at that point. It was basically pay ridiculous rates for a policy with no liability, or rent for awhile instead of buying a house. When that changed, my agent switched me (and a bunch of other people, I suspect) to the new insurers that were coming in.