State Farm Umbrella policy renewal...substantial increase

[billethkid]

Yes it seems like everything is going up but today's surprise.....annual renewal of State Farm umbrella policy with a 42% increase over last year. The policy is a standard $1,000,000 policy.
The reason given was since there has been no significant increase over recent years and increasing claims they are just "...catching up...".

I advised them it was time to start shopping.

Any similar experiences with Umbrella coverage?

[retiredguy123]

I have my auto insurance with State Farm, and I have $1 million in liability coverage, but it is part of the auto policy, NOT an umbrella policy. The premium for the liability insurance is $303 for 6 months. Whenever I have reviewed an umbrella policy, it only covered the same risks as the underlying policies, auto and homeowners. Some people mistakenly believe that an umbrella policy covers additional risks, but that is often not true. I have $500K in homeowner's liability with Progressive, which I think is adequate. Both State Farm and Allstate will allow a liability limit of $1 million on their auto policies, but many companies will max out at $250K. If you really need an umbrella policy, good luck, because they can be very expensive. I would avoid it if possible. But, if you really need it, I would increase it to 3 or 4 million. Why not just max out on the liability coverage available for the auto and homeowner's basic policies?

[Byte1]

Yes it seems like everything is going up but today's surprise.....annual renewal of State Farm umbrella policy with a 42% increase over last year. The policy is a standard $1,000,000 policy.
The reason given was since there has been no significant increase over recent years and increasing claims they are just "...catching up...".

I advised them it was time to start shopping.

Any similar experiences with Umbrella coverage?

Welcome to Florida, the highest property insurance rate in the U.S.

[Aces4]

I have my auto insurance with State Farm, and I have $1 million in liability coverage, but it is part of the auto policy, NOT an umbrella policy. The premium for the liability insurance is $303 for 6 months. Whenever I have reviewed an umbrella policy, it only covered the same risks as the underlying policies, auto and homeowners. Some people mistakenly believe that an umbrella policy covers additional risks, but that is often not true. I have $500K in homeowner's liability with Progressive, which I think is adequate. Both State Farm and Allstate will allow a liability limit of $1 million on their auto policies, but many companies will max out at $250K. If you really need an umbrella policy, good luck, because they can be very expensive. I would avoid it if possible. But, if you really need it, I would increase it to 3 or 4 million. Why not just max out on the liability coverage available for the auto and homeowner's basic policies?

Forbes evaluation:

"Umbrella insurance provides coverage beyond your liability insurance limits, which can pay out if you or your household members accidentally cause property damage or injuries to other people. Umbrella coverage can also cover you or your household members if sued.

Whether you need umbrella insurance depends on your assets, the risks you face and what you have to lose."

I wouldn't be without it and each to their own. But I would definitely shop my insurance and leave State Farm since I personally think that excuse is lame.

[retiredguy123]

Forbes evaluation:

"Umbrella insurance provides coverage beyond your liability insurance limits, which can pay out if you or your household members accidentally cause property damage or injuries to other people. Umbrella coverage can also cover you or your household members if sued.

Whether you need umbrella insurance depends on your assets, the risks you face and what you have to lose."

I wouldn't be without it and each to their own. But I would definitely shop my insurance and leave State Farm since I personally think that excuse is lame.
Personally, I think auto liability insurance is way more important than homeowner's insurance. That is why I have $1 million in auto liability coverage. The OP doesn't say if his umbrella policy is for auto or homeowners, but, if it is for auto, I think he can just increase his auto liability coverage with State Farm and drop the umbrella policy. He can also check with Allstate, a company that also allows a $1 million limit. Also, to some extent, having an extreme amount of liability insurance just encourages an attorney to sue for a higher amount and a jury to award a higher amount. Some awards are based on the amount of insurance money available, not on the actual damage. On the other hand, if you only have the minimum amount of $10K, you really don't have any coverage worth having.

[manaboutown]

I have had a $5M umbrella policy with State Farm for many, many years. I do not know if they go higher than that these days. That was the limit when I took it out. The premiums do go up with every yearly renewal but I feel it is at least important if not essential for me to have.

[asianthree]

Renewed in February, my homeowners went up $15. Umbrella up $5. This is year 3 for this house.

[New Englander]

Renewed in February, my homeowners went up $15. Umbrella $5. This is year 3 for this house

Really?

[BillyGrown]

Renewed in February, my homeowners went up $15. Umbrella $5. This is year 3 for this house

Last paid about 1300 for the house, auto is 900 every 6 months and golf cart is 75 per year. So we pay about 3175 per year here in Florida for insurance.

[Michael G.]

Wouldn't that be great to be self-insured with all this?? ������

[asianthree]

Wouldn't that be great to be self-insured with all this?? ������

We self insure 2 of our north homes. As long as you own you can choose as little or as much coverage.

[kidnerkim]

I dropped State Farm. After fighting with them on roof claim & them changing adjusters every 30 days, losing documents etc. They may have lower premiums but their customer service is awful. Better to shop around

[westernrider75]

Yes it seems like everything is going up but today's surprise.....annual renewal of State Farm umbrella policy with a 42% increase over last year. The policy is a standard $1,000,000 policy.
The reason given was since there has been no significant increase over recent years and increasing claims they are just "...catching up...".

I advised them it was time to start shopping.

Any similar experiences with Umbrella coverage?

My agent warned me last year to expect a large increase this year. It was suggested to drop the umbrella increase the liability on auto coverage and anything else you might have. Said it would be cheaper.

[BlueStarAirlines]

Renewed in February, my homeowners went up $15. Umbrella up $5. This is year 3 for this house.

Similar experience. Homeowners went down $230 and umbrella went up $200. Year 3 for the house...

[goneil2024]

Personal “umbrella” coverage usually not standard among personal lines insurers so what one insurer provides may not be exactly the same as another insurer.

As for how much limit someone should purchase, that would typically depend on what you have at risk, and could loose in the event of a serious accident, as well as the cost, individual risk capacity and risk tolerance.

If someone is dealing with an independent agent/broker have them explain the market, provide options, ask them the tough questions and understand what is covered by the policy. Also, obtain or have the agent/broker provide information on typical personal excess liability and umbrella claims/losses and benchmarks for similarly situated customers.

A large amount of personal insurance coverage is purchased directly from the insurer vs. independent agents. It’s important to understand which provider is being approached, the market, and current trends.

This comment is for general information only as each situation is different. When making important financial decisions consult, financial, legal and other qualified subject matter experts before making a decision.

[retiredguy123]

I have had a $5M umbrella policy with State Farm for many, many years. I do not know if they go higher than that these days. That was the limit when I took it out. The premiums do go up with every yearly renewal but I feel it is at least important if not essential for me to have.
To me, a $5 million umbrella policy can make sense for some people. But a $1 million umbrella policy is usually too expensive to justify the cost vs the coverage. If you only need $1 million, you are better off shopping for individual policies that offer higher liability limits within the basic auto or homeowner's policy. Both State Farm and Allstate are good choices for high available liability limits.

[kkingston57]

Yes it seems like everything is going up but today's surprise.....annual renewal of State Farm umbrella policy with a 42% increase over last year. The policy is a standard $1,000,000 policy.
The reason given was since there has been no significant increase over recent years and increasing claims they are just "...catching up...".

I advised them it was time to start shopping.

Any similar experiences with Umbrella coverage?

Same policy as yours but not with State Farm. 10 years ago $250. Now close to $800. Do have 4 vehicles including the golf cart

[kkingston57]

Last paid about 1300 for the house, auto is 900 every 6 months and golf cart is 75 per year. So we pay about 3175 per year here in Florida for insurance.

Who is your agent and what are your liability limits? Sounds great and I was in the insurance business

[Cliff Fr]

You can blame attorneys Dowe, Sue and Cheatem

[Spartan86]

Yes it seems like everything is going up but today's surprise.....annual renewal of State Farm umbrella policy with a 42% increase over last year. The policy is a standard $1,000,000 policy.
The reason given was since there has been no significant increase over recent years and increasing claims they are just "...catching up...".

I advised them it was time to start shopping.

Any similar experiences with Umbrella coverage?
Yes,
I have had my auto and umbrella with Connect by AmFam (Costco) for several years. Had my Homeowners with them in OH as well. I was about $575 for $2Mil last July. My renewal just arrived at $1316. I’m thinking my auto renewal may be a little eye watering as well - I did get a letter last year saying they were no longer writing new business here. I’m thinking I will be encouraged to move on. I had a SF quote yesterday for a similar price. They quoted auto as well so I’m not sure if that included any bundled “savings” :D. I have another quote coming through an independent so we'll see.