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914World.com _ 914World Garage _ OT: Umbrella Insurance, necessary?

Posted by: neo914-6 Aug 18 2005, 06:01 PM

Ok, so now that my wife has accumated more collectibles she wants me to buy an umbrella policy insurance to cover them.

My insurance company, Allstate says I need to max both my home and auto insurance BEFORE I can buy the umbrella policy! I have old cars so I don't carry full coverage but my small shoebox I live in is appreciating.

I live in lawsuit prolific California and live in the high cost of insurance/everything city of San Jose.

Any reasonable suggestions or guides?

Posted by: cnavarro Aug 18 2005, 07:24 PM

If it makes you feel any better, I have an umbrella policy coupled with my renter's insurance for the business that runs me $56/month from State Farm. My agent originally suggested such a policy as we just moved to a larger home, have a few cars, and are starting a family, so there are lots more liabilities than I had previously. Money well spent :-)

Posted by: Howard Aug 18 2005, 07:31 PM

PM sent with free advice

Posted by: MarkV Aug 18 2005, 08:07 PM

QUOTE (Howard @ Aug 18 2005, 05:31 PM)
PM sent with free advice

It would be nice to hear what that advice is.

I have an umbrella that I am considering dumping. The umbrella only costs about $350 per year, but you are required to carry very high liability coverage to qualify for the umbrella. My agent thinks umbrella is a good idea but says she has never had a policy holders umbrella kick in.

I think the umbrella is liability only and will not cover your collectables.

Posted by: bondo Aug 18 2005, 09:04 PM

I used to have an umbrella, but the wind picked up and it turned inside out and bent. I wish I had insured it.

Posted by: wheelo Aug 18 2005, 10:09 PM

As mentioned , Umbrella is for liability- only, and most carriers require "underlying" coverage amounts. Thing about umbrella policies, is they are usually very "Broad" in coverage, that is you are covered during more activities, such as boating, atv, etc.
They are excess insurance, purchased to protect your assets, should you or your family become the target of an injury type lawsuit. Potentially, they could take your house, and garnish your wages, to settle the awarded cash, should you be found "at fault" for damages.

- M