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  #1  
Old 04-05-2012, 04:15 PM
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insurancegoddess insurancegoddess is offline
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So you have an umbrella insurance policy...

Does is REALLY extend over your boat or is that your assumption?

My interactions with potential clients and existing clients are always what inspire the topics that I choose to write about. I feel that if just one person is asking a question, or doesn’t understand an insurance product or concept they are probably not alone.

When I am taking an application for a new quote from someone calling in, one of the obvious questions I ask is: “What level of liability coverage are you interested in carrying?” The responses, while they vary, all have the same tune when the caller mentions they have an umbrella liability policy. I often hear one of the following comments:

“Well, I have a personal umbrella policy that covers me on this boat so give me middle of the road limits.”

My response to this: "Awesome! You are one step ahead of the next guy because you actual carry additional liability coverage to protect yourself. However, did you know that…"
a. Most insurance carrier’s umbrella products, specifically exclude boats capable of OVER 65mph.
b. If you do not specifically list your primary boat insurance policy on the actual umbrella policy and pay the additional premium, then your umbrella policy will NOT extend over your primary policy.
c. If you do not carry the minimum underlying liability amount on your primary boating policy and the boat was listed under the umbrella, you would be creating a gap in coverage that in the event of a major catastrophe, you would be liability for filling. Meaning. IF you have an umbrella that kicks in after $500,000 in losses on your primary but you chose to only carry $300,000 on your primary boat policy, then you would be responsible for paying the $200,000 out of pocket before the umbrella policy would begin to pay out on a loss. This would be a costly mistake.

Most of the callers that I talk to did not realize the above and often indicate that they will need to check on if their carrier really does cover the boat they own or are looking to buy. I love that the comments inspire discussion with their existing home/auto agents!


“I have a business and we have large liability limits to cover me.”

My response is usually very short and sweet: “unless your business is operating the boat and owns the boat, your commercial umbrella does not extend coverage over a pleasure performance boat policy.


I could go on and on, but I won’t bore you with that. If you carry an umbrella, I encourage you to do your homework and know what it takes for your carrier to extend coverage over your performance boat. You may find that they just won’t do it. In that event, you will need to carry higher limits on the primary boat policy to compensate for lack of umbrella protection.

Should you have any questions, feel free to ask. If you have a specific umbrella situation that you’re wondering about that others could learn from, feel free to post it here and I will respond.

Have a great day!
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  #2  
Old 04-05-2012, 05:37 PM
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Zone 5 Zone 5 is offline
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Thanks Stacy!! Great write up. But then I knew all that, cause you already told it to me when we were dealing with the umbrella!
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  #3  
Old 04-06-2012, 05:10 PM
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TripleB TripleB is offline
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Actually the umbrella policy caused me to sell my snowmobile, it was 10 years ago but I think the highest liability coverage they offered for my snowmobile was $300,000 and my umbrella didn't kick in till $500,000
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Old 04-06-2012, 05:25 PM
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Good info. I'll have to double check my umbrella coverage.
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  #5  
Old 04-06-2012, 05:54 PM
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Quote:
Originally Posted by BBB725 View Post
Actually the umbrella policy caused me to sell my snowmobile, it was 10 years ago but I think the highest liability coverage they offered for my snowmobile was $300,000 and my umbrella didn't kick in till $500,000
Sounds about right and that would have been one hefty bill had there been a liability loss
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Stacy Shute (Hanlon)

The NO LIMITS Insurance Agency
866-728-9757 ext 101
Wake Zone Marine Insurance Brokerage, Inc. - CA License 0H05075
For an online quote: www.wakezoneinsurance.com
stacy@wakezoneinsurance.com
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  #6  
Old 04-06-2012, 07:26 PM
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Quote:
Originally Posted by BBB725 View Post
Actually the umbrella policy caused me to sell my snowmobile, it was 10 years ago but I think the highest liability coverage they offered for my snowmobile was $300,000 and my umbrella didn't kick in till $500,000
That is how my umbrella works. Doesn't start till you have $500K of basic
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  #7  
Old 04-07-2012, 11:48 AM
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HyperBaja HyperBaja is offline
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Interesting. What are you guys paying for what kind of coverage on the umbrella?

I have been meaning to look into one, I will however need to raise the insurance on everything except the boat it seems. Will be interesting to see the final cost.

In sure it all depends on the policy, but do the business unbrellas often cover boats over 65?
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Last edited by HyperBaja; 04-07-2012 at 11:50 AM.
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  #8  
Old 04-07-2012, 04:01 PM
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Zone 5 Zone 5 is offline
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Quote:
Originally Posted by HyperBaja View Post
Interesting. What are you guys paying for what kind of coverage on the umbrella?

I have been meaning to look into one, I will however need to raise the insurance on everything except the boat it seems. Will be interesting to see the final cost.

In sure it all depends on the policy, but do the business unbrellas often cover boats over 65?
I haven't seen the bill in a while. Last one was ~ $3-350 a year ($1 million)and covered all toys, it never changed rate wise with adds/subtracts of stuff. So cars/sleds/jetskis/boat etc. but as stated, you need base policy of $500K
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  #9  
Old 04-07-2012, 06:25 PM
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MMarsha MMarsha is offline
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Hmmm- I have $1M on my boat policy. Need to check the umbrella, might be able to drop the boat to $500K and save some coin!
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  #10  
Old 04-07-2012, 09:03 PM
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Originally Posted by MarylandMark View Post
Hmmm- I have $1M on my boat policy. Need to check the umbrella, might be able to drop the boat to $500K and save some coin!
you need to split any savings with Stacy
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  #11  
Old 04-07-2012, 09:51 PM
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Originally Posted by HyperBaja View Post
Interesting. What are you guys paying for what kind of coverage on the umbrella?
I'll check on it Monday, I have a 5 million personal and a 10 million business
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  #12  
Old 04-08-2012, 08:00 AM
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MMarsha MMarsha is offline
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See on the far right, covers boats AFTER your limits there have been reached.
Attached Images
File Type: jpg usaa.jpg (64.6 KB, 1 views)
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  #13  
Old 04-08-2012, 08:25 AM
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MMarsha MMarsha is offline
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USAA says:

Liability Liability coverage in the event you are held legally responsible in a personal liability claim. This coverage helps pay for remaining costs after the liability limits of your auto, homeowners or watercraft insurance have been reached.

When choosing this coverage you should consider the value of your home, rental property, savings, investments and future earnings potential. A claim that exceeds your liability coverage limits can put these and other assets at risk.

Example: A family member is driving down the road and loses control of their car causing an accident involving four cars and an 18-wheeler. The total medical costs of the injured persons exceed the $300,000/$500,000 Bodily Injury Liability Limit of your auto insurance, and the repair costs of the damaged vehicles exceed the $100,000 Property Damage Liability Limit of your auto insurance. We'll pay up to your selected Umbrella coverage limit to help cover the costs that exceed your auto insurance liability limits.


The biggest mistake with insurance I see people make if they cover how much they think all of their stuff is worth to replace. They have a $100K boat and want to make sure that is covered if they were in a boating accident, which if I were in an accident that would be the last thing I would be thinking about.
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  #14  
Old 04-08-2012, 08:29 AM
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MMarsha MMarsha is offline
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Underlying Exposures on mine lists me, wife, both our cars, both our houses and my boat.

$1M per occurance is $24/month
$2M per occurance is $35/month
$3M per occurance is $47/month
$4M per occurance is $58/month
$5M per occurance is $70/month

Last edited by MMarsha; 04-08-2012 at 08:33 AM.
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  #15  
Old 04-08-2012, 01:02 PM
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Zone 5 Zone 5 is offline
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Quote:
Originally Posted by MarylandMark View Post
See on the far right, covers boats AFTER your limits there have been reached.
well duh. Its an umbrella, not a main policy
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