This isn't really the case, while traditionally one's personal liability coverage comes from a homeowners or renters policy, you can obtain a stand alone personal liability policy and then either an umbrella or personal excess liability...umbrella covering all of your exposures such as home, auto and watercraft; personal excess would just be additional personal liability. While you need a mailing address, it does not have to tie to a residence you actually reside, there are plenty of nomadic and expat folks out there using this, see my previous post on USLI. I can chime in more tomorrow.
Umbrella Policy premium
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Last: 1 yr ago by fka ftc
What's your differentiator?East Dallas Ag said:
Nope they aren't. But what do I know, I do it for a living.
I don't mean to denigrate you. Seriously. I'm all ears because I'm all about saving money here.
The answer to your question could take a day to write out, but at its core it's what's covered and what's not and how the losses are handled, it can vary dramatically from carrier and policy and the devil is most defintely in the details...but if it were a commodity, it would all be the same, no?
Not to offend but when someone says insurance is a commodity it's the most obvious sign they do not have a full understanding of insurance.
Not to offend but when someone says insurance is a commodity it's the most obvious sign they do not have a full understanding of insurance.
Well, yes. Which is why I use a broker.East Dallas Ag said:
The answer to your question could take a day to write out, but at its core it's what's covered and what's not and how the losses are handled, it can vary dramatically from carrier and policy and the devil is most defintely in the details...but if it were a commodity, it would all be the same, no?
Not to offend but when someone says insurance is a commodity it's the most obvious sign they do not have a full understanding of insurance.
But in my own research and what brokers have said is that these core products are all pretty much the same. Our financial advisor has confirmed as well. There just isn't much to differentiate these products anymore.
All you have to do is make sure the key things are covered and it's all pretty much the same.
Of course, when the **** actually hits the fan then some of these companies perform differently but that has nothing to do with you.
I think you're getting some bad advice, but it can depend on your specific situation.
I think the best comparison to insurance is car companies/brands. A Toyota Corolla and a MB S550 both have 4 doors, 4 wheels a steering wheel and can get you where you need to go, but are they the same?
Happy to discuss with you offline if you like.
I think the best comparison to insurance is car companies/brands. A Toyota Corolla and a MB S550 both have 4 doors, 4 wheels a steering wheel and can get you where you need to go, but are they the same?
Happy to discuss with you offline if you like.
Valid point but I just don't think it applies anymore to insurance. What's the premium for paying for an S550 when it's still the same companies providing the same coverage at the end of the day? It's a highly regulated business.East Dallas Ag said:
I think you're getting some bad advice, but it can depend on your specific situation.
I think the best comparison to insurance is car companies/brands. A Toyota Corolla and a MB S550 both have 4 doors, 4 wheels a steering wheel and can get you where you need to go, but are they the same?
Happy to discuss with you offline if you like.
And I'm just talking about the basic products. I'm not referring to the more sophisticated stuff like Whole Life....
[Klaxons fire off and the heavens open up!!!!!!!!!!]
I think we have differing definitions of "commodity" here, which probably causes people to view it differently. For example:
- Commodity Design: How the product works, including coverages, deductibles, etc. This is certainly commoditized (and heavily regulated) for a lot of insurance products.
- Commodity Pricing: Meaning little variability in cost for a given coverage. This one can be somewhat true for some products, but it generally is not accurate. Even a super-commoditized product design like term life has wildly varying rates depending on the company offering it. This has many causes, but can include the relative efficiency of a company's operations, the amount of commission paid, historical claims experience, and differing profit targets (i.e. some companies subsidize either home insurance or car insurance to obtain bundled pricing competitiveness, etc.).
- Commodity Service: This one is a gray area, as all companies have some regulation on how they pay claims and process premiums/refunds. The consumer may experience widely differing service levels, depending on the company they're dealing with.
Bottom line - it kind of depends what you as a consumer value, i.e. high touch service vs. absolute lowest price, but overall, I'd lean against calling insurance commoditized overall. My assessment says YES, NO, and MAYBE for the three items above.
- Commodity Design: How the product works, including coverages, deductibles, etc. This is certainly commoditized (and heavily regulated) for a lot of insurance products.
- Commodity Pricing: Meaning little variability in cost for a given coverage. This one can be somewhat true for some products, but it generally is not accurate. Even a super-commoditized product design like term life has wildly varying rates depending on the company offering it. This has many causes, but can include the relative efficiency of a company's operations, the amount of commission paid, historical claims experience, and differing profit targets (i.e. some companies subsidize either home insurance or car insurance to obtain bundled pricing competitiveness, etc.).
- Commodity Service: This one is a gray area, as all companies have some regulation on how they pay claims and process premiums/refunds. The consumer may experience widely differing service levels, depending on the company they're dealing with.
Bottom line - it kind of depends what you as a consumer value, i.e. high touch service vs. absolute lowest price, but overall, I'd lean against calling insurance commoditized overall. My assessment says YES, NO, and MAYBE for the three items above.
At the end of the day, insurance is a math exercise. If the insurer gets the loss reserve and the earnings on their portfolio correct, their prices are correct. Some may be better at forecasting those things, but if they screw up the reserves, their earnings from the portfolio are going to suffer in the future. Sure, they can tweak things around the edges like how much and what personal property is covered on a HO policy and where the liability coverage extends, but those things don't make it less of a commodity. It's a heavily regulated industry in every state.
As for the Win At Life's question, I think there is a misunderstanding on what exactly an umbrella policy is. It is not a personal liability policy. It is a supplement that kicks in after other policy coverages have been exhausted. A personal liability policy is not a unique or exotic product. Any decent insurance broker can help you find a policy that covers what you want.
As for the Win At Life's question, I think there is a misunderstanding on what exactly an umbrella policy is. It is not a personal liability policy. It is a supplement that kicks in after other policy coverages have been exhausted. A personal liability policy is not a unique or exotic product. Any decent insurance broker can help you find a policy that covers what you want.
I saw this article from A&M Real Estate Center email and thought others may find this helpful regarding the topic of liability and land. Its lengthy, but informative.
https://www.recenter.tamu.edu/articles/technical-report/Land-Occupier's-Liability-Guide-2380
https://www.recenter.tamu.edu/articles/technical-report/Land-Occupier's-Liability-Guide-2380
"The absence of the word accountability is not the same as wanting no accountability" -unknown
"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
Well of course it is not a commodity to you....
I think Insurance is largely a commodity, can it be tailored to a personal need, yes. But anything like Whole live or variable life is complete garbage for 99.9% of people.
I think Insurance is largely a commodity, can it be tailored to a personal need, yes. But anything like Whole live or variable life is complete garbage for 99.9% of people.
ok.
Farmers just quoted me $965 for $1M. Nothing special being covered. I feel like I'm doing the insurance game wrong.
Kids? Pool? Watercraft? Vacation home?
380Ag said:
Farmers just quoted me $965 for $1M. Nothing special being covered. I feel like I'm doing the insurance game wrong.
Use a broker. Let them do that work.
Yes, yes, no and no
Kids and pool increase the premium as do auto accidents, especially if it's on the kids driving record. $250/500/100 auto liability limits make umbrella more costly than $500,000 CSL
so many variables.
so many variables.
I have an umbrella policy but this calculator says I actually don't need it.
I feel better having it, but wonder how accurate that crude calculator is. The bulk of my net worth is either 401K or equity in primary residence, and my auto and home insurance have decent liability coverage.
USAA charged me $494 on first million - teen drivers, at fault accident on wife's record, pool - seems high
I feel better having it, but wonder how accurate that crude calculator is. The bulk of my net worth is either 401K or equity in primary residence, and my auto and home insurance have decent liability coverage.
USAA charged me $494 on first million - teen drivers, at fault accident on wife's record, pool - seems high
I'm about $180 on 1M through State Farm. Sounds like I need to negotiate it down.
Just paid $327 for 1mm coverage. Maybe should have got more, idk. 2 cars, 2 rental homes 1 with a pool and a primary residence with a pool on a little land.
I'm at $188 at USAA for first million.
. ________________________________________________DISREGARD the calculator and answer this QUESTION. If one person's liquid net worth is $500,000 and another's is $5,000,000, which one needs the most an umbrella of $1,000,000 or more? (Assume that each has a policy limit of $300,000.) The obvious answer is the one whose net worth is $500,000. An $800,000 judgment would wipe out the $500,000 net worth and only put an ugly dent in the $5,000,000 net worth.Complete Idiot said:
I have an umbrella policy but this calculator says I actually don't need it.
I feel better having it, but wonder how accurate that crude calculator is. The bulk of my net worth is either 401K or equity in primary residence, and my auto and home insurance have decent liability coverage.
USAA charged me $494 on first million - teen drivers, at fault accident on wife's record, pool - seems high
if no one can get their grubby hands on my retirement accounts or house...do I really need an umbrella policy?
hmmm
hmmm
$800k is not an ugly dent on $5MM net worth. $80k maybe.strbrst777 said:. ________________________________________________DISREGARD the calculator and answer this QUESTION. If one person's liquid net worth is $500,000 and another's is $5,000,000, which one needs the most an umbrella of $1,000,000 or more? (Assume that each has a policy limit of $300,000.) The obvious answer is the one whose net worth is $500,000. An $800,000 judgment would wipe out the $500,000 net worth and only put an ugly dent in the $5,000,000 net worth.Complete Idiot said:
I have an umbrella policy but this calculator says I actually don't need it.
I feel better having it, but wonder how accurate that crude calculator is. The bulk of my net worth is either 401K or equity in primary residence, and my auto and home insurance have decent liability coverage.
USAA charged me $494 on first million - teen drivers, at fault accident on wife's record, pool - seems high
I would cover your vulnerable assets up to the amount of a reasonable anticipated loss, which could easily stretch into $2MM to $3MM. Past that you probably did something illegal and your insurance will wish you luck.
Considering you will undoubted win the lottery the day after someone breaks their neck falling down your stairs, then I would rethink taking a "go naked" approach. They can still get a judgment against you even if you cannot pay it right away.GoAgs92 said:
if no one can get their grubby hands on my retirement accounts or house...do I really need an umbrella policy?
hmmm
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