Is an Umbrella policy worth the price?
It seems like, similar to home and auto insurance in California, Umbrella premiums have skyrocketed. Is anyone else in California experiencing this? I’m currently with State Farm.
Last year, my $2M Umbrella policy cost only a few hundred dollars, but now the renewal is $2400/year—despite no claims, accidents, or lawsuits. I have three cars, three drivers, and I own my home, with no pets and minimal liability.
Has anyone else seen such a significant increase in their premiums year over year?
It’s unfortunate to hear about such a significant increase in your umbrella insurance premium. Many people in California have reported similar experiences due to rising costs associated with liability claims, legal expenses, and even environmental factors like wildfires. Insurers are adjusting their rates to reflect the growing risks, and it seems that State Farm isn’t alone in this trend.
It might be worth shopping around to see if other insurance companies can offer you a better rate, especially since you have a clean record. Some companies might have different criteria or advantages for setting their rates. Additionally, you could also review your coverage limits to see if you truly need the $2M umbrella, or if a lower limit might suffice, while still providing you with the protection you desire.
On the flip side, if you do a lot of entertaining or have any assets you want to protect, maintaining an umbrella policy is often worthwhile, even at a higher cost. Just be sure to weigh the benefits against the premium increase.