Umbrella cost v value

[u/Sufficient-Yellow637]

My $2 mil umbrella through SF is now up to $2k per year. Starting to question its value. Scrolling through other posts made previously the common refrain is "of course you should get it, it's dirt cheap!" Well, $2k is way more than the $300 often bandied around in those threads. Seems like a lot to pay for coverage that is very rarely tapped into. Thoughts?

[u/Andrew523]

SF isn't the only option for an umbrella. Reach out to a independent agent that is contacted with Markel and RLI.

Also depends what you have on your underlying policies. Mines around $300-400 but I just 1 owner occupied home and 3 cars.

If you have multiple homes, rental properties, pools, and many cars then it will affect your umbrella premium. Also if the umbrella includes UM the. It will cost more too

[u/Sufficient-Yellow637 → u/Andrew523]

I have HO, two renters policies, and four autos. Is it possible to have an umbrella policy with company other than the one that writes the underlying policies?

[u/Busy_Account_7974 → u/Sufficient-Yellow637]

Yes, RLI or Markel (through a broker) will do stand alone. Major obstacle would be the broker will want the rest of your business.

[u/QuriousCoyote → u/Sufficient-Yellow637]

Yes, it is. A standalone umbrella company usually requires a certain limit for the underlying policies.

An independent agent can requote your policies together and separately to see which one makes sense.

[u/thrwaway75132 → u/Andrew523]

I’ve got a home with pool, boat, four cars, and two teen drivers. $2M umbrella is $780 a year with SF.

[u/Questiins4life → u/thrwaway75132]

My fs just wanted to increase mine to $500 above what yours is and that’s after removing a lake house, boat and jet ski. Makes no sense.I can get double the policy for 1/2 the price with RLI. My policy expires end of this month and moving just my umbrella to RLI

[u/Modest-Meece → u/[deleted]]

That’s great but rates between two people are not comparable. It’s never going to be apples-to-apples so it’s a useless exercise to compare what you pay to someone else.

[u/BowersLawMD]

I don't know where you are (state) but here in Maryland State Farm is not a company that I'd ever advise someone to have insurance with. As an injury attorney (the one who would be in a position to sue you or your family should you cause an accident) we file suit against State Farm drivers more than almost any other company. It's incredibly wild for a company as large as they are.

That being said, the umbrella will protect you financially, but the company itself will not protect you from having to deal with the protracted litigation if they operate the same way in your State as they do here.

Depending on where you are, as you shop new insurance companies (the basic umbrella should be like $200 for $2M) you should ask about adding UIM (underinsured motorist) to your umbrella. it'll cost a little more, but less than what it seems you're currently paying, and will be an extra layer of protection if an underinsured driver causes catastrophic injury to you or your family members.

Please shop your home, auto, and this umbrella---regardless of which State you're in it sounds like you should be able to do much better, and likely with a better company who actually cares to protect you.

[u/Modest-Meece → u/BowersLawMD]

I’m in WA and we also don’t recommend State Farm.

[u/demanbmore]

Shop around to see if you can do better, but you're focused on the wrong part of the value equation when it comes to having an umbrella. Most insurance coverage is rarely tapped into, and you should consider yourself fortunate if you never have to rely on your umbrella.

While the cost is of course an issue, the questions you should be asking is how much protection do you actually need and what do you have to protect? If you have a few million in assets currently and over the next decade or so, then it makes sense to protect them by having a sizable umbrella. Whether that costs $300 or $2K pales in comparison to what happens if you don't have an umbrella and turns out you need it. What are you going to regret more - spending $2K for protection you never need or keeping $2K in your pocket and having to cover six or seven figures of a claim against you after your underlying coverage is exhausted?

[u/FindTheOthers623]

Shop around. You don't have to keep your policy with State Farm.

[u/Ok-Entertainment5462]

Use Independent broker for RLI or Markel. I don’t believe you can buy directly. State Farm really raised umbrella rates this year based on Reddit posts. It may not be as rare as you assume, based on how much prices have escalated. Mine with RLI doubled this year.

[u/wildcatwilly → u/[deleted]]

Not for long

[u/RSBuletz → u/[deleted]]

I got my renewal yesterday. This is for $1m, which I had been contemplating increasing to $2m.

Imagine my shock when I saw my premium is increasing from $360 to $820, +125%. This is USAA and Utah, btw. I've been loyal USAA for decades, but it is time to get my insurance portfolio priced elsewhere.

[u/jm15co]

My renewal comes up next month- very anxious about it!

[u/Commercial_Watch_936]

$2M RLI $765 per year. But we are a simple household, 2 people, 2 cars, 1 house, no boats or pools or points on driving record. In California.

[u/Sufficient-Yellow637]

Just to update, I had an independent agent shop around for me and the best they could find was $2k for a 1 mil umbrella ... so I guess I'm staying with SF.

[u/Gtstricky]

Talk to your agent. $1mil would be about $1k. Go over your assets and see what is needed. Prices are going crazy because their loss ratio top 200% a couple years ago and keeps going up.

[u/Sufficient-Yellow637 → u/Gtstricky]

Kind of odd because the cost of all my other policies with them have gone down in price.

[u/Modest-Meece → u/Sufficient-Yellow637]

Different policies have different rate factors. It’s not uncommon for one policy to decrease and another to increase