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Author: gracie105 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17946  
Subject: who needs umbrella insurance? Date: 3/27/2007 1:53 PM
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If I have $300k liability insurance on my home owners insurance and $100k each person / $300k each accident and $50k property damage liability with my car insurance, is that enough?

I am not sure why so many people have this type of insurance?
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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15425 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 2:57 PM
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Generally, people who have significant assets that an attorney might see worth going for carry umbrella liability insurance. It also can be less costly to carry an umbrella and the (lower) limits required by the umbrella on underlying policies than carrying $1 million or higher liability coverage limits on each and all of a person's primary policies, especially if you own multiple vehicles, multiple properties, etc. Also, some umbrella liability policies add coverage for some additional exposures that are not covered at all in primary policies, usually with a self-insured retention (SIR) amount - Customarily, these exposures that are covered are Personal Injury type exposures in nature, for example Defamation of Character. An additional feature of an umbrella liability policy, can be that, at your option, you can carry Uninsured and Underinsured Motorist coverage up to the Liability limit that you carry - This is akin to putting $1 million liability coverage on every other vehicle on the highway that that might hit you and cause you serious injuries. For example, my Brother and Sister-in-Law were in a very serious auto accident early last year: http://boards.fool.com/Message.asp?mid=23738881 They are still undergoing rehab. If they had carried $1 mil UM/UIM on their umbrella, which they didn't, the umbrella would have picked up where/when the other driver's $500,000 liability limit became exhausted.

HTH,
Bob

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15426 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 3:15 PM
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gracie105: "If I have $300k liability insurance on my home owners insurance and $100k each person / $300k each accident and $50k property damage liability with my car insurance, is that enough?"

Have you recently priced the cost of an ER visit, surgery adn a few days in ICU? Or even two upscale or one luxury car?

From Edmunds - 2007 Honda Accord, EX-L V-6 2dr Coupe w/Navigation (3.0L 6cyl 5A) - $28,723. Total two of those in one accident and your property damages are $57,446.

2007 Toyota Camry, XLE V6 4dr Sedan (3.5L 6cyl 6A) - $27,094.

"I am not sure why so many people have this type of insurance?"

Because they have otehr assets they would like to protect and believe that the limits you stated are too low to provide them adequate protection.

Regards, JAFO




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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15429 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 5:35 PM
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Have you recently priced the cost of an ER visit, surgery and a few days in ICU? Or even two upscale or one luxury car?

From Edmunds - 2007 Honda Accord, EX-L V-6 2dr Coupe w/Navigation (3.0L 6cyl 5A) - $28,723. Total two of those in one accident and your property damages are $57,446.


Well, no. Because as soon as they drive the car of the lot its worth several K less, nevermind if its a couple years old or more. But a three of four car accident with pretty new cars could exceed this.

Hospital/rehab, etc bills can get very very high of course.


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Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15430 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 5:44 PM
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>> Well, no. Because as soon as they drive the car of the lot its worth several K less.... <<

Maybe to insurers, but not so much for the used car market any more. The "buy an ALMOST new car and let the first buyer eat all the depreciation" strategy worked so well and became so popular that the cost of driving a new car off the lot is rarely the 20% or so that it used to be. The "almost new" discount just isn't as large as it was in the past.

#29

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15431 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 8:33 PM
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Also, 1 to 2 hours in fees for the caliber of defense attorney(s) an insurer will furnish when they have $1 million on the line will cost more than the annual premium for a $1 million dollar umbrella policy. A lot depends on what you have at risk. Plaintiff attorneys, generally, won't waste their time, if there's little to gain. If you have significant assets, that's another matter.

Because the majority of liability claims are settled at or below the limits you carry, insurers tend to charge marginally incremental premiums for higher limits.

If you don't feel a significant need for higher limits, you might look into a Combined Single Limit (CSL) on your auto policy, instead of the split limits your carrying under that policy - $300,000 for all of your liability exposure (and UM/UIM, if your wish), for example, instead of the 100/300/50 split limits. In doing so, you would leave the split up to the courts, in the event of multiple injuries or significant Property Damage claim (and courts, generally, split available coverages in such a circumstance proportionately) - And if you were solely injured in your car by an uninsured or underinsured driver, for example, your injuries, under UM/UIM would be covered up to $300,000 instead of $100,000. If your insurer offers CSL, the premium is usually pretty nominal over what is charged for comparable split limits.

Bob

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15432 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/27/2007 9:21 PM
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My employer has informed me that I really should stop freely sharing concepts that I have learned that help earn our livelihood - Sorry, I guess I'm out.

Bob

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15435 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/29/2007 9:22 PM
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Hi Bob,

My employer has informed me that I really should stop freely sharing concepts that I have learned that help earn our livelihood - Sorry, I guess I'm out.

PLEASE tell me you are joking!

Your contributions to this board and community are HUGE! Your employer is a (f)ool to think that the goodwill, trust and endearment you generate won't all come back around to you, naturally.

Here's hoping you're jsut pulling our legs a week early for April Fool's day!

Cheers,
Dave

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15437 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/30/2007 9:29 AM
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PLEASE tell me you are joking!

Your contributions to this board and community are HUGE! Your employer is a (f)ool to think that the goodwill, trust and endearment you generate won't all come back around to you, naturally.

Here's hoping you're jsut pulling our legs a week early for April Fool's day!



I think it will pass, if I stay off the boards at work - Can't blame him for not wanting that.

Thanks,
Bob

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15443 of 17946
Subject: Re: who needs umbrella insurance? Date: 3/31/2007 11:50 AM
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It looks like we're getting an agency agreement with Hartford - That might help some.

Bob

Our agency website:

http://www.hudlininsurance.com/

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