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| insurance [2024/06/03 01:52] – [Umbrella] clarify what pd coverage is for qlyoung | insurance [2024/07/02 21:54] (current) – add page title qlyoung | ||
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| In May 2024, prompted by something random, I did a complete review of all my insurance policies (except for medical) and learned a lot of things about insurance which I should have learned about 10 years ago. Here I've jotted down some of what I've learned in the hopes that maybe it will prompt someone else who was similarly uninformed to learn these things. | In May 2024, prompted by something random, I did a complete review of all my insurance policies (except for medical) and learned a lot of things about insurance which I should have learned about 10 years ago. Here I've jotted down some of what I've learned in the hopes that maybe it will prompt someone else who was similarly uninformed to learn these things. | ||
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| Prior to my grand review I did not understand umbrella insurance. Now that I understand I am of the mind that nearly everyone should have it. | Prior to my grand review I did not understand umbrella insurance. Now that I understand I am of the mind that nearly everyone should have it. | ||
| - | In short, umbrella insurance covers you for liabilities in excess of any other policy. Suppose you crash your '99 Camry into a McLaren Artura (about $300k), totaling it, and you have $150k of PD liability coverage on your auto policy. After that pays out you are still liable for $150k. If you do not have an umbrella policy you are screwed and must come up with that $150k out of pocket. If you do have an umbrella policy, your umbrella policy kicks in after your auto policy has hit its limit and covers the excess up to its maximum, and you pay nothing out of pocket. | + | In short, umbrella insurance covers you for liabilities in excess of any other policy. Suppose you crash your '99 Camry into a McLaren Artura (about $300k), totaling it, and you have $150k of PD liability coverage on your auto policy. After that pays out you are still liable for $150k. If you do not have an umbrella policy you are screwed and must come up with that $150k out of pocket. If you do have an umbrella policy, your umbrella policy kicks in after your auto policy has hit its limit and covers the excess |
| You are probably thinking, wow, that sounds very nice. It must be expensive, right? Nope! When I got quotes for them recently, an average $1M umbrella policy was around $150/yr. Relative to an unexpected 5 or 6 figure out of pocket expense, that is extremely cheap. That is why I think most people should have an umbrella policy. | You are probably thinking, wow, that sounds very nice. It must be expensive, right? Nope! When I got quotes for them recently, an average $1M umbrella policy was around $150/yr. Relative to an unexpected 5 or 6 figure out of pocket expense, that is extremely cheap. That is why I think most people should have an umbrella policy. | ||
insurance.1717379562.txt.gz · Last modified: 2024/06/03 01:52 by qlyoung
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