Seeking Advice on Umbrella Insurance
I’ve been in the process of shopping for umbrella insurance and have encountered a few challenges.
Here are my main concerns:
1) Motorcycle Coverage: I own a motorcycle, and I’m struggling to find policies that meet the minimum coverage requirements set by most insurers. The few companies that do offer adequate coverage have premiums that are prohibitively expensive, essentially costing as much as my motorcycle payments each year.
2) Property in Mexico: I also own a 50-acre farm in Mexico, which includes a house. I’m currently transitioning the ownership of the house to a Mexican equivalent of an LLC, but for now, I own the property personally. I do have homeowner’s insurance on the property through a Mexican insurance provider.
3) Liability Coverage Needs: I’m looking for an umbrella policy that provides between $3 million to $5 million in liability coverage.
The best option I’ve found so far offers only $1 million in coverage, but the insurer requires me to non-operate the motorcycle until I find a more affordable policy that meets the necessary conditions. This was the maximum coverage they could provide due to the foreign property.
I have a couple of questions:
1) Why am I unable to exclude my Mexican property or motorcycle from the umbrella policy?
2) Can an insurance broker assist me with these issues? I’ve reached out to one but have yet to receive a response.
Any additional suggestions or insights? Am I overlooking something?
It sounds like you’re navigating some complexities with your umbrella insurance needs, especially with the unique circumstances involving your motorcycle and property in Mexico. Here are some thoughts that might help address your concerns:
Exclusion of Mexican Property or Motorcycle: Umbrella insurance typically requires all your major assets and liabilities to be covered or under consideration by the policy. This includes vehicles and properties, regardless of where they are located. The reason you may not be able to exclude them is that the umbrella policy is designed to provide additional coverage beyond your home, auto, or other insurance policies. If the motorcycle and the property in Mexico are seen as potential liabilities, the insurer wants to ensure that they are accounted for in the overall risk assessment of your policy.
Working with an Insurance Broker: Yes, working with an insurance broker can definitely help. Brokers are usually well-versed in the intricacies of different insurance products and can help you find a policy that suits your specific circumstances better than going through direct companies. If the broker you reached out to hasn’t responded, consider following up or trying to connect with another broker who has experience with umbrella insurance as well as unique situations like foreign properties and motorcycle coverage. It may also help to specifically ask them about companies that cater to non-standard risks.
Alternative Suggestions:
Ultimately, persistence is key. You might need to reach out to multiple brokers or insurance companies to find the right fit. Good luck!