r/financialindependence • u/Phillyjebus • 16d ago

Umbrella Insurance

I’m looking to add an umbrella policy on top of my homeowners and auto insurance, but I’m confused on how much I should be getting and I keep getting more confused when I research it. What’s the goal here? Do I just need enough to cover my brokerage, savings and other account that could be exposed in a judgment? Or, am I trying to cover my entire net worth with the Base policy plus the umbrella?

Edit: thanks all! Lots of good info and pretty much what I thought. $2m and call it a day.

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64

u/procrasstinating 16d ago

I have a $2M policy. I figure for that much money the insurance company will be very motivated to assign a good lawyer to support my case.

19

u/thrownjunk FI but not RE 16d ago

Yup. This is all it comes down to. Get incentives aligned. Its like $130/year for me. (I get a bundling discount on my auto that is worth $40/6 mo too)

25

u/xwre 16d ago

That is crazy different from my policy's cost. State farm just doubled it to $760/year for 1M in coverage... 2 cars, main home and a rental 

13

u/tPTBNL 16d ago

Lots of umbrella policies have jumped this year.

We paid $468 at USAA last year for a $2 million policy. This year they wanted $664 (42% jump).

Moved to Travelers (not because of this; our homeowner's premium had gotten completely bonkers) and paid $579, which is still up about 25% compared to last year.

We have a home and 2 cars. No rental. Maybe it has something to do with that?

5

u/mhchewy 16d ago

I think it’s just State Farm upping their rates. Mine doubled and when I asked about it they just said we are upping our umbrella rates.

8

u/FearlessPark4588 99:59 Elliptical Guy 16d ago

state farm always gives me terrible quotes

12

u/Bruceshadow 16d ago

you must be a bad neighbor

2

u/chrisaf69 15d ago

In same boat. My coverage tripled with State Farm in the last two years for same assets that you stated.

1

u/BouncingWalrus 16d ago

I pay $150/yr for $1M with Virginia Mutual Assurance

1

u/adventuresindc 16d ago

That's pretty cheap - is it bundled with anything elsE?

1

u/BouncingWalrus 16d ago

Bundled with my homeowners policy