Is an Insurance Umbrella necessary ?
I'm paying for Home, Auto and Life insurance, and have discovered an added UMBRELLA payment on my policy. Is that added charge really necessary?
Also, the ins company keeps raising my rates, though I've NEVER used the ins nor late on a single payment for decades now, so I'd be grateful if anyone could recommend, from EXPERIENCE, a really good insurance company, as I want to make a change. NO INSURANCE COMPANY feedback, PLEASE!
Update:You ALL have made me feel Wiser for having asked the question. Thank you so much.
Comments
I agree with Go with the Flow except with those companies mentioned. An umbrella is necessary if you have assets like a home to protect. It protects against lawsuits.
You mention raising rates but on what ? The auto insurance? Or the homeowners insurance? There are often good reasons that happens. You need to ask your insurance agent why a certain rate went up. Taking a higher deductible especially on the homeowners insurance can reduce your premiums and keep you from putting in needless small claims you should be taking care of yourself.
If you have your home and auto with the same company you may be getting a higher discount on the auto insurance by taking the umbrella policy too. I actually think you have a very smart insurance agent that is doing what is best for you.
People that get this umbrella policies are usually people that have some equity built up in a home and assets. Good to have.
Ex: A friend of your kid slips on a wet floor on your house.
Well, that kid can sue you for over the amount your home insurance covers.
That means they go after your assets.
Such as brokerage accounts, other properties, etc.
An umbrella policy may offer you about a million over and above what other insurances such as home and car will cover.
Another ex: Your kid is learning how to drive and runs over the neighbors kid.
Someone could sue you for everything you've got. The umbrella will protect you.
Families that have no assets do not bother with umbrella policies.
Because if someone sues them, what are they going to get? Nothing.
You should really compare once every 5 years.
Geico and progressive are good companies. You need to compare.
An umbrella is only necessary, if you get sued for more money than you have coverage. Unfortunately, at that point in time, it's too late to buy it.
Look, If you have the assets that suggest you'd be a rich target, it's penny wise and pound foolish to go without an umbrella, That coverage is CHEAP, for at least a MILLION dollars of peace o fmind.
Rates go up. Just like the value of your house has gone up, from when you bought it decades ago. Just like your assets have gone up, from what you earned/were worth decades ago. Just like the cost of a loaf of bread, and the cost of a gallon of gas. Unless you're willing to sell your house today, for what you originally paid for it .. . .you, too, believe in the power of inflation.
Do it yourself insurance is CLEARLY not working for you - either that, or you have a lousy agent. Call around to a few agents. Invest the time, sit down and talk to them, and find one who knows WHY you need that umbrella, and can explain it to you in reasonable language. Talk to them about raising your deductibles, or otherwise manipulating the coverages, so that the prices stay low, yet you're still protected from a CATASTROPHIC loss.
if you have assets, the umbrella insurance policy protects those assets.
Insurance companies are licensed in each state, without knowing where you are we can't recommend a company. If you are in an area, that has had an abundance of natural disasters lately, it would make sense that your rate has risen too.