Personal Liability Umbrella Question

[Exdpguy]

Hi guys/gals. I'm new to the insurance business and just found these forums. Looks like a great place, and thanks in advance for any advice you can give me.

I've got a client who currently owns multiple homes, only one of which is insured with my company/agency.

This particular client has $1M liability limit on the home insured with us, but also has a $5M personal umbrella policy with the company insuring his other homes. He was recently told by them that in the event of a suit arising from an event happening at the home insured with my company, his personal umbrella would not provide any protection.


Anyone care to comment on this? Is his other insurer just trying to strongarm him into moving this one home's coverage over to them, or is this a common thing. My thoughts were that the umbrella policy he has would cover him AFTER my company had reached the $1m limit on his homeowner policy.

 

[joshb]

Hi guys/gals. I'm new to the insurance business and just found these forums. Looks like a great place, and thanks in advance for any advice you can give me.

I've got a client who currently owns multiple homes, only one of which is insured with my company/agency.

This particular client has $1M liability limit on the home insured with us, but also has a $5M personal umbrella policy with the company insuring his other homes. He was recently told by them that in the event of a suit arising from an event happening at the home insured with my company, his personal umbrella would not provide any protection.


Anyone care to comment on this? Is his other insurer just trying to strongarm him into moving this one home's coverage over to them, or is this a common thing. My thoughts were that the umbrella policy he has would cover him AFTER my company had reached the $1m limit on his homeowner policy.

This is common, Umbrella carriers require the underlying policies to be with carriers that meet certain criteria (i.e. the carrier must be AM Best rated B+ or better, the underlying policy can't have certain limitations like animal liability, etc.). Also, they could just require all of the policies to be with their company which makes total sense from the carriers perspective. If you have a large claim that requires an umbrella payout, and you have two different companies involved it can become a headache for the carriers, so if that carrier has all of the policies its an easier situation for them.

 

[moeasadi]

You can recommend your client a PL umbrella carrier that will accept all A rated underlying carriers. personalumbrella dot com

 

[djs]

He may have hit a limit on how many homes he can schedule on a personal umbrella. At some point, it has to go into a commercial umbrella.

Don't worry, just move all of his homes to you and write the umbrella.

Dan