Umbrella policy...yes or no?

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amother

Mon, Sep 18 2023, 2:44 pm

Are umbrella policies something that most people have?

If you work, own a house, have kids who live in your home in their 20s driving, is it best to do this?

I just added a DC who now lives at home, age in their the 20s, to an existing policy and it bumped the price up 2000 dollars a year on a million dollar policy.

What are the pros and cons of one, it will cost me approximately 3500 a year.
I feel like I'm being ripped off, but who knows..

amother

Cyclamen

Mon, Sep 18 2023, 2:48 pm

Why do they need to be added to your policy. An umbrella protects your assets in case of a lawsuit. Do your kids have any assets? In the past , we added kids to car insurance but not the umbrella.

amother

Mon, Sep 18 2023, 3:05 pm

amother Cyclamen wrote:

Why do they need to be added to your policy. An umbrella protects your assets in case of a lawsuit. Do your kids have any assets? In the past , we added kids to car insurance but not the umbrella.

It's not a choice. If they are on the same auto policy as us, they are automatically put on the umbrella policy . If they live at home, it's less expensive for them, when they are on our policy, than to go solo

amother

Cyclamen

Mon, Sep 18 2023, 3:13 pm

amother OP wrote:

Interesting. I dont think that is a universal policy.

amother

Peachpuff

Mon, Sep 18 2023, 3:18 pm

Is your umbrella policy the same company as your auto policy? Maybe shop around

amother

Mon, Sep 18 2023, 3:26 pm

amother Peachpuff wrote:

Is your umbrella policy the same company as your auto policy? Maybe shop around

Yes, I was told it has to be, because that's the point. It kicks in chas vshalom after the funds of the auto insurance policy are maxed out.

amother

Cyclamen

Mon, Sep 18 2023, 4:24 pm

Maybe it varies by state? That is not the case everywhere. Call another company in your area and ask.

amother

Lightgray

Mon, Sep 18 2023, 4:37 pm

In New York for reference. We have a car insurance policy with Geico and an umbrella policy with travelers. Yes, it is worthwhile to pay for the umbrella policy. It will kick in if there is any liability that is exceeds any other insurance policy.

amother

Turquoise

Mon, Sep 18 2023, 5:34 pm

amother Cyclamen wrote:

Why do they need to be added to your policy. An umbrella protects your assets in case of a lawsuit. Do your kids have any assets? In the past , we added kids to car insurance but not the umbrella.

Because the purpose of an umbrella policy is to protect assets.

If someone drives a car that is registered to you, then you are legally responsible.

The only way to not be legally responsible is if the child owned the car and had separate insurance for the car they owned and even then you might be sued as deep pockets if the child lived with you and so it was viewed as a sham ownership.

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