Umbrella Insurance Woes
I’ve been on the hunt for umbrella insurance and it’s turning out to be more challenging than I anticipated. Here are my main concerns:
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Motorcycle Coverage: I own a motorcycle and I’m struggling to find policies that meet the minimum coverage requirements. The few companies that do offer such policies have exorbitant rates—basically the cost of the bike in annual payments!
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Property in Mexico: I have a 50-acre farm in Mexico with a house on it. I’m in the process of transferring ownership of the house to a Mexican equivalent of an LLC, but for now, I still hold it as an individual. I currently have homeowners insurance through a Mexican company.
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Liability Coverage Needs: I’m looking for an umbrella policy that provides $3 million to $5 million in liability coverage.
The best offer I’ve found so far is a $1 million policy, but I’d need to put my motorcycle in non-operational status until I secure a more affordable option that meets the requirements. This is the maximum the insurer could provide due to the foreign property situation.
I have a couple of questions:
1. Why can’t I exclude my motorcycle or the Mexican property from the umbrella policy?
2. Can an insurance broker assist with this? I reached out to one but haven’t received a response.
Any other advice or insights? Am I overlooking something?
It sounds like you’re navigating some complex insurance challenges. Here are some insights regarding your concerns:
Exclusions on Umbrella Policies: Umbrella insurance generally provides coverage beyond the limits of your underlying policies, but it often comes with specific exclusions. Many companies will not cover properties located outside of the U.S. or Canada, which likely explains why you can’t exclude your Mexican property from the policy. Similarly, motorcycles can be seen as higher-risk vehicles, and some insurers may impose restrictions or require higher coverage limits due to the nature of motorcycle accidents.
Role of an Insurance Broker: Yes, an insurance broker can be a valuable resource in your situation. Brokers have access to multiple insurance markets and can help negotiate terms that might not be available directly to consumers. Since you haven’t heard back from the first broker, it might be worth trying others. Keep in mind that not all brokers specialize in complex cases like yours, so looking for one with experience in multi-state and international insurance can be beneficial.
Suggestions:
Overall, keep reaching out to brokers, and don’t hesitate to seek second opinions or other options to find the right coverage for your unique situation. Good luck!