Seeking Assistance with Umbrella Insurance
I’ve been on the hunt for umbrella insurance and have run into a few challenges.
Here are my main concerns:
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I own a motorcycle, and I’m struggling to find policies that meet the required minimum coverage. The options that do cover these requirements are significantly overpriced—about the same as my yearly payments for the bike.
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I also have a property in Mexico—a 50-acre farm with a house. I’m in the process of transferring ownership of the house to a Mexican LLC, but currently, I hold it as an individual. I have homeowners insurance through a Mexican insurance company, covering the property.
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I’m looking for liability coverage in the range of $3 million to $5 million through the umbrella policy.
The best offer I’ve found so far is for a $1 million policy, but I would need to declare the motorcycle as non-operational until I can secure a more affordable, compliant policy. This limit is due to the foreign property.
I have a couple of questions:
1. Why can’t I exclude the Mexican property or motorcycle from the umbrella policy?
2. Can an insurance broker assist with this issue? I reached out to one but haven’t received a response.
If you have any suggestions or insights that might help, I’d greatly appreciate it!
It sounds like you’re navigating some complexities with your umbrella insurance needs, especially with the motorcycle and international property considerations. Here are some thoughts on your questions:
Exclusion of Mexican Property and Motorcycle: Many umbrella policies have specific guidelines on what is covered, particularly when it comes to properties outside the U.S. or vehicles that might fall into higher-risk categories, like motorcycles. These exclusions often stem from the fact that insurers can have limited control or understanding of international laws and regulations regarding property and liability. Additionally, motorcycles typically represent a higher risk for insurers, which can limit their willingness to provide coverage, especially for umbrella policies that are designed to protect your assets on a broader scale. Overall, this helps insurers maintain a manageable risk pool.
Using an Insurance Broker: Yes, an insurance broker specializing in personal lines insurance may be able to help you navigate these issues more effectively. They often have access to multiple insurers and can find options that an individual shopper might miss. If you haven’t received a reply from the broker you contacted, it might be worth following up or trying a different broker who specializes in high-net-worth individuals or those with unique insurance needs.
Additional Suggestions:
– Consult with Multiple Brokers: Sometimes different brokers have different networks of insurers; a specialized broker might have access to companies that can accommodate your unique situation.
– Review Your Coverage Needs: Make sure you’re aware of your existing policies (homeowner’s, motorcycle, etc.) and their limits. Sometimes bundling certain types of coverage can lead to fewer exclusions and lower overall costs.
– Ask About Specific Endorsements: Some insurers may allow you to add endorsements or riders for unique situations, which could help tailor your policy to your needs.
– Consider Alternative Coverage Options: If umbrella policies are limited due to your circumstances, you might investigate other forms of liability coverage, such as personal liability insurance, that can complement other existing policies.
It can be frustrating dealing with these limitations, but with a little persistence and the right resources, you should be able to find a solution that meets your needs!