Seeking Guidance on Umbrella Insurance
I’ve been looking into umbrella insurance and facing a few challenges along the way.
Here’s what I’m dealing with:
-
Motorcycle Coverage: I own a motorcycle, and I’m struggling to find policies that satisfy the minimum coverage requirements set by most umbrella policies. Those that do meet the criteria are prohibitively expensive, costing me nearly the same as my bike’s annual payments.
-
Property in Mexico: I have a 50-acre farm in Mexico with a house on it. I’m working on transferring ownership of the house to the Mexican equivalent of an LLC, but for now, it’s owned individually. I’ve got homeowners insurance through a Mexican insurance provider for this property.
-
Liability Coverage Needs: I’m looking for umbrella policy coverage in the range of $3M to $5M.
So far, the best option I’ve found is a $1M policy, but I’d have to declare the motorcycle as non-operational until I can find a more affordable policy that meets my needs. This was the maximum coverage the insurance company would provide because of the foreign property.
I have a couple of questions:
- Why am I unable to exclude the Mexican property or motorcycle from the umbrella policy?
- Can an insurance broker assist with this issue? I’ve reached out to one, but I haven’t received a response.
If anyone has additional advice or insights, I’d greatly appreciate it! Am I overlooking something important?
Navigating umbrella insurance can be tricky, especially when dealing with unique situations like yours. Here are some insights that might help you with your questions:
1) Excluding the Mexican Property or Motorcycle from the Umbrella Policy: Most umbrella insurance policies are designed to provide an extra layer of liability coverage for personal assets and activities deemed high-risk. Insurance companies often assess risk based on the policies they cover, and both foreign properties and motorcycles are typically seen as elevated risks. Since your motorcycle is being viewed as a liability risk, that’s likely why the insurer is hesitant to allow exclusions. Similarly, properties in foreign countries can introduce complexities that insurance companies may not want to underwrite. It’s best to discuss this with your insurer to fully understand their policies and any potential for flexibility.
2) Working with an Insurance Broker: Yes, an insurance broker can definitely help you navigate these issues. A knowledgeable broker can provide you with multiple options and help you find insurers that may have more liberal underwriting criteria regarding foreign properties and motorcycles. If you haven’t received a reply from the broker you contacted, consider reaching out to another broker or following up to ensure they received your inquiry. It’s vital that you engage with someone experienced in high-net-worth insurance, especially with considerations like umbrella policies, international property, and motorcycles.
Other Suggestions:
– Look for Specialized Insurers: Some insurance companies specialize in high-net-worth clients and may offer more tailored coverage options that include foreign properties and motorcycles.
– Consider Bundling Policies: Sometimes bundling your home, auto, and umbrella insurance can lead to discounts or more favorable terms.
– Reevaluate Coverage Needs: Assess whether you need the full $3m to $5m in coverage. Depending on your assets and risk exposure, you might find that you can adjust your desired coverage amount and still protect yourself adequately.
– Review Individual Policies: Ensure that your homeowners insurance in Mexico provides adequate liability coverage on its own, as this might minimize the need for an umbrella policy altogether.
Overall, don’t hesitate to seek out multiple professionals for their input. The insurance landscape can vary significantly, and finding the right fit often takes some time and persistence. Good luck with your search!