Umbrella Insurance Dilemma
I’m currently in the process of finding umbrella insurance and running into some challenges.
Here are my main concerns:
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Motorcycle Coverage: I own a motorcycle, and I’m struggling to find policies that fulfill the minimum coverage requirements of most umbrella insurance providers. The few companies that do offer suitable policies have extremely high premiums, almost equivalent to the annual cost of the bike itself.
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Property in Mexico: I have a 50-acre farm in Mexico, which includes a house. I’m in the process of transferring the ownership of the property to the equivalent of an LLC in Mexico, but for now, I still own it as an individual. I have homeowners insurance for the property through a Mexican insurance company.
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Liability Coverage Needs: I am looking for liability coverage in the range of $3 million to $5 million through the umbrella policy.
So far, the best offer I’ve received is for a $1 million policy, but I’d need to declare the motorcycle as non-operational until I can find a more affordable option that meets the coverage criteria. This limit was imposed due to my 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? I’ve contacted one but haven’t received any response.
I’d appreciate any advice or suggestions. Am I overlooking something?
It sounds like you’re navigating a complex insurance landscape, and it’s understandable to have concerns about finding the right coverage. Here are some thoughts on your questions and situation:
Umbrella policies are designed to provide an extra layer of liability coverage above and beyond your existing policies (like auto and homeowners insurance). Insurance companies typically want to ensure that all potential risks are covered, which is why they might require any properties or vehicles that could pose liability risks to be included in the coverage. They may view the motorcycle and the Mexican property as significant risks that could potentially lead to costly claims, thus preferring to exclude them rather than allowing exclusions.
Working with an Insurance Broker:
Additional Suggestions:
– Assess Your Current Policies: Ensure that your existing motorcycle and homeowners insurance meet any necessary requirements. Sometimes modifying an existing policy can unlock better umbrella options.
– Research Specialty Insurers: Some insurance companies specialize in high-risk or unique scenarios, like those involving foreign properties or motorcycles. Look into insurers known for flexible coverage options.
– Consider Liability Risks: If it’s feasible, examine whether you can adjust your motorcycle usage or property management (such as moving the property into an LLC sooner) to lower liability profiles. This might open up more options for umbrella coverage.
– Explore Group Insurance Plans: Sometimes group policies through associations or organizations can offer better rates and more flexible options for certain insurance needs.
Stay persistent, and eventually, you should be able to find a solution that works for you. It may take some time, but with the right help and resources, you can navigate these challenges.