Insurance

[lncoop]

I was reading a thread a few weeks ago involving insurance. It got a little contentious (imagine that), but I benefitted from it. Umbrella coverage eventually made its way into the discussion, and as a result I called my agent to ask him about it. To make a long story somewhat shorter, thanks to you guys I now have an umbrella policy and my wife thinks I'm a genius (but she'll get over that soon enough). It's pretty cheap peace of mind IMHO. So, thanks everyone! That is all.

 

[convergent]

Re: Insurance

Umbrella policies are great. I've had one ever since we owned a house with a pool. The thing you need to make sure is that your umbrella and boat polices are tied together so that the umbrella kicks in when a claim exceeds your boat policies liability limits. My agent told me he was doing that when I added the boat policy so I assume they have to do something to connect them.

 

[lncoop]

Re: Insurance

Yes, they are definitely connected. That's what started the ball rolling, boating accident coverage questions. I found out in the process that our auto policy liability limits were way too low as well. Guess I was trying to cheap it out when I initiated coverage with him way back when.

 

[marlboro180]

Re: Insurance

Yeah, pretty inexpensive hey? I just paid mine and it seems reasonable as it covers my arse if something bad happens .

 

[Sikiguya]

Re: Insurance

It isn't really a 'connection'. To explain an umbrella policy simply, it is an extension of coverage. You have to have the 'underlying' coverage. Your boat liability would act as the primary. If the claim exceed the limit, the umbrella policy would then pay the overage. If you do not have the correct underlying limit, you may have a huge deductible. For example, most policy require $300K in liability. If you, by mistake, only have $100K, then you are responsible for the gap. This usually don't happen as it would be an error on your agent and go against his error and omission. The most common mistake is the agent not adding the umbrella to include a new risk such as a new car, motorcycle, or boat.

Just a piece of advice, everyone should meet with their agent once a year. Go over your coverage and make sure what you think your policy is and what it actually is matches up.

 

[lncoop]

Re: Insurance

That's right. In order to purchase umbrella coverage you have to meet the minimum liability requirements. I had to raise my liability limits on autos, home and boat, which I needed to do any way. The umbrella coverage isn't utilized until the respective liability limit has been exhausted.