Is an Umbrella Policy Still Worth It?
I’ve noticed that, much like home and car insurance in California, the cost of Umbrella policies seems to be skyrocketing. Is anyone else in California experiencing this with their insurance? I’m currently with State Farm.
Last year, my $2 million umbrella policy was only a few hundred dollars. Now, I’m facing a renewal rate of $2,400 per year, and I haven’t had any claims, accidents, or lawsuits. I have three cars, three drivers, and I own my home—no pets and not much liability to speak of.
Has anyone else seen similar year-over-year increases?
It sounds like you’re experiencing a pretty significant increase in your umbrella policy premium. Unfortunately, you’re not alone—many Californians have reported similar shifts in their insurance costs, especially with the rising risk factors associated with natural disasters, increased litigation, and overall insurance market changes in the state.
For a $2M umbrella policy to jump from a few hundred dollars to $2400 is substantial, and it does raise questions about the overall stability and trends in the insurance market right now.
You might want to compare quotes from other insurance providers since rates can vary widely. It could also help to speak with your agent at State Farm to see if there are any adjustments or discounts available for your situation, especially since you have no claims or accidents.
Have you considered bundling your policies or exploring different options for your home and auto insurance? That might help mitigate some of the increases. It’s always good to shop around and keep an eye on what other companies are offering.