Insurance

[Seevee]

Recently retired insurance agent here. It amazes me how many people focus on the cost of their insurance and ignore the coverages. Start with your household’s net worth. This is what you can lose if you’re sued and you lose. Round up to the next million dollars and that is what your Personal Liability Umbrella Policy (PLUP) should be for.

Example: you have $1 million equity in your home(s), $1.5 million in retirement savings, other investments worth $1 million, you should have a $4 million PLUP.

In order to have the PLUP, most insurance companies will then require certain liability limits on your other policies. For example, auto policies might be 250/500/100 and boat insurance at $1 million.

Find a company with outstanding claims service, then find a good agent that represents them. If you go with an independent agent, don’t change companies every couple of years to get a slightly better rate. The better companies reward long-term loyalty with discounts, lowered deductibles or other perks.

I represented State Farm and I happen to think they are the best. My wife and I are staying with them as we know their claims service is outstanding. There are other good companies, of course, and there are lots of lousy companies as well.

Finally, remember that liability coverage has nothing to do with the value of your boat. It covers how much damage the boat can do. A crappy, beat-up $5,000 boat can catch fire at a dock and destroy several million-dollar boats. That’s why many marinas require a minimum of $1 million in liability coverage…

Robster,


Well, "maybe" you'll lose something in a law suit, but maybe not. There's MANY ways to hide assets, heck you cant touch that $1 home, in Florida....(Ask OJ). Also there are many assets that are non touchable, including some retirement accounts, and others.



BUT, last time I checked, to be liable, they have to PROVE negligence. Unfortunately most trial attorneys don't care if your negligence, they just want to get whatever insurance money you have. If you have none, and no attachable assets, the plaintiff won't be able to get an attorney to take the case.


And, the quality of the company has little bearing on what they might do in the future. You could be a loyal customer for years, and they drop you like a hot potato when they want.... no reason. There is NO SUCH THING as a loyal insurance company.... doesn't exist.



And, yes, price matters. That's the first thing I look at. If the number doesn't make sense, no amount of coverage will change that, so I could argue to pass on that company.


In a perfect world, you comments would be great, but ain't that way. And, I and several colleagues have had the same experience over the years.

 

[Meander]

Hi - an agent I called on East Coast got a quote in for me $3600 500K liability hull 66K with 19K deductible - he tries to find better and I told him I need no hull insurance and like to see 1000K liability - underwriters are on hold till storm passes through so there was delay in getting additional quotes in.
One thing I noticed - asking west coast agents or underwriters if you are on east coast - all they see is risk of hurricanes. Ask a local and for them its business as usual - would argue that 50% plus of US flotilla is gulf of mexico up florida and east coast so somebody must be out there to insure - good luck everybody and I keep you posted for reference