Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Question for the group, I just purchased an umbrella policy. Do others have this insurance? It isn't that expensive, and it keeps you from losing a bundle in a law suit, for example someone badly hurt on your property or in a car accident. Regular HO and car insurance cover to a point, but if God-forbid you are at fault and sued for more than that coverage, it could hit hard on your life savings.
I like @Old_Joe reproduction of the posts from the other thread better than my reproduction and so deleting the rest of this post. (This forum does not have a Delete Post function and so you are stuck with this useless post.)
Following is a reproduction of the insurance-related posts from "The Week In Charts" thread.
Rbrt - April 18 From the blog:Transportation costs remain stubbornly high (+10.7% over last year), with skyrocketing auto insurance rates being a major contributing factor. The 22% increase over the last year is the biggest 1-year spike since 1976.
Insurance inflation is crazy. I need to pay attention more. Thanks.
BaluBalu - April 18 I thought 20+% auto insurance increase is absurd until I received my home insurance renewal notice with a 55% increase in premium. Never made any claims and live in an urban area. I called the insurance company to increase my deductible. For increasing the deductible by $2,500, premium decreases by $80. The insurance co.’s reasoning for increasing the premium by 55% is climate change and increase in material and labor costs. That is the same excuse they used the last two years for increasing it by more than 20% each year.
KIE, the insurance ETF has a TR of 32% over the last 3 years. Over the three year period, my home insurance premium more than doubled. How to better protect against increasing insurance premiums?
Derf - April 19 @BaluBalu ; Time to look elsewhere for insurance FWIW ! Do you have Erie in your neck of the woods ?
MikeM -April 19 @BaluBalu, I just moved my State Farm policies, 2 cars and my HO. I was with them for 10 years which really is a big mistake in the insurance game. Went to an independent broker a friend recommended who deals with several companies. Ended up saving ~$1000/year. Used some of that savings to buy a $1million umbrella policy which I've been meaning to buy for a while. Bottom line, staying faithful to an insurance company will cost you a lot of money.
Erie is a very good option. I got the best price with NYCM, which is only available in NY state I believe
Old_Joe -April 19 Thinking that there's somewhere to hide in the ongoing insurance disaster is very wishful thinking. Plain and simple: the major risk factors have increased to the point where the old models no longer work.
The basic concept of insurance is that any specific loss situation will be confined to relatively few claimants, covered by affordable premium income from the larger insured community, with room for profit left over.
When entire large contiguous communities are at risk because of one single loss situation (especially weather or fire related) that model simply doesn't work.
The reality is that the insurance model as we have known it is disappearing piece-by-piece, and no major financial or government entity has yet advanced a sustainable replacement model. California and Florida are your coal-mine canaries.
BaluBalu - April 19 Thanks for the replies. I hope I am not ruining this thread with comments not directly related to the OP.
There is a lot of BS practiced by insurance companies' leadership. Most of us understand what risk assumption and risk diversification means.
In my small town, I have not seen a single fire in the 14 years I have been here. We have two fire stations for a 4 sq miles town and I have not seen a fire truck on the roads in years. (I see them when I drive by the fire station.) But I pay in increased premiums for the fire hazards caused by PG&E (wild fires!) and others in places with big, old trees and overhanging power lines. My neighborhood has neither of those. Evidently, I have to pay higher premiums for fires and risks in Hollywood, Napa, and other places in the country. But when you look at auto insurance and health insurance premiums, they vary by zip code. Poorer zip codes pay higher premiums for both auto insurance and health insurance - I know this because I moved around. I will not be surprised if home insurance premiums are also higher in poorer neighborhoods because my extended family members who live in richer neighborhoods with 50% more house size pay only 10% more in home insurance premium. They live only 15 miles away from me so material and labor cost differences do not explain. We can always explain away anything or build a story around any outcome if we are not interested in progress. Whose progress? you ask!
We are at the mercy of politicians and lobbyists (business leaders).
None of the above helps in figuring out how to protect ourselves from increasing premiums during my life time. (We can hope for some slow (hardly) moving social reforms but that is for another day.)
I buy insurance through a broker and I asked them yesterday and they said (after checking) I am getting the best deal in the market place. I shall call a different broker.
Old_Joe - April 19 @BaluBalu- Be sure to keep us informed of your findings- maybe a new thread devoted to the insurance situation?
BaluBalu - April 19 Good idea. May be @Observant1 / thread moderator can move our recent posts from this thread to the new thread so this thread stays clean so it is easier for others to access old Week in Charts posts.
Observant1 - 11:37AM I created the new "Rising Auto & Home Insurance Costs" thread in Other Investing. Requested that posts for auto and home insurance in this thread be moved to the new thread.
OK, that should get us off and running on Insurance matters.
I called two insurance companies my two neighbors are using to get a quote and both of those companies said they are no longer writing new policies in my zip code. So, it is possible I have to renew or go without home owner's insurance. I heard similar stories from others, who felt they were forced to renew their existing policies. Interesting strategy by insurance companies. If they do not like the market place, why are they not exiting the market altogether?
They are. essentially, "cherry-picking" and spreading out their exposure to limit the potential losses to a level that can be supported by premium revenue.
Major insurance companies will not insure our house by the Russian River at Guerneville. I asked our neighbor, an attorney, who he was using, and they have also insured us now for a few years. I am really expecting that company to cancel one or both of us at some point, because if one house burns it is very likely that the other will also. If I was running the insurance company I would be very concerned about such exposure.
To repeat what I said above - When contiguous communities are at risk because of one single loss situation (especially weather or fire related) the present model simply doesn't work. And the fact that there have been no major fires for a long time in any particular area is really meaningless... that was the situation in almost every major fire in California in recent years.
My memory of the first such major incident of that type was the Oakland Hills firestorm of 1991. Ashes from that fire rained down on us out by the ocean in San Francisco. Prior to that, the Oakland Hills had never had a major fire either.
I've had an umbrella policy for several years now. My 401K and Roth IRA have excellent creditor protection¹. For assets outside of these accounts, the umbrella policy offers protection against large lawsuits which are highly unlikely but potentially very impactful. This policy provides peace of mind and it's relatively inexpensive as you have mentioned.
¹ IRA / Roth IRA creditor protection varies by state.
@MikeM asked- Question for the group, I just purchased an umbrella policy. Do others have this insurance? It isn't that expensive, and it keeps you from losing a bundle in a law suit, for example someone badly hurt on your property or in a car accident. Regular HO and car insurance cover to a point, but if God-forbid you are at fault and sued for more than that coverage, it could hit hard on your life savings.
Absolutely- we've had this coverage for over fifty years. I wasn't aware of the need until a friend was sued over a comment that his wife had made publicly. I don't recall the details of that situation, but their insurance did cover the lawsuit claim.
@Observant1, peace of mind, exactly why I bought it, even if unlikely ever needed. Most of our money is in IRAs and I have not looked at protection under lawsuits.
To outrageous premiums, you can add virtual inaccessibility in my case, with auto insurance. She or her Sec. have actually answered the phone on their LOCAL line only ONCE when I called. When we signed-on, that was our only conversation with the Agent. Never met her. She can be reached by MESSAGE through Lib. Mut. Ridiculous state of affairs. Calls to ask that she call us have gone nowhere. Feeling pretty well screwed.
Absolutely- we've had this coverage for over fifty years. I wasn't aware of the need until a friend was sued over a comment that his wife had made publicly. I don't recall the details of that situation, but their insurance did cover the lawsuit claim.
I wasn't aware umbrella insurance could be had for what reads like 'slander'.
@MikeM We have a $1 million umbrella policy, that applies to extra 'liability(s) that may come forth in a law suite, etc. I believe $1 mil is the common starting number. This policy is in effect for only home and auto extra coverage and is $386/year. I don't know how state and/or location in a state may affect this cost.
@Catch22- Yes sir, slander it was alleged to be. And the insurance company settled rather than fight it in court. Mike is correct- $1 mil is the common starting number. Sorry, but I don't have the annual premium available on this computer (we're up at Guerneville for the weekend, as usual).
Additional- Mark, I really have no idea as to the circumstances regarding "slander" coverage. The "coverage and exclusion" sections of our present State Farm policy are very vague and unspecific- so I have to admit that I have no idea if that policy would cover slander. I'm mainly concerned about extra coverage in case of a vehicular accident claim. Perhaps another poster could add some knowledge to this question.
My memory of the first such major incident of that type was the Oakland Hills firestorm of 1991. Ashes from that fire rained down on us out by the ocean in San Francisco. Prior to that, the Oakland Hills had never had a major fire either.
Not just ashes, all kinds of fragments of books, etc. We were way out at the end of Church St. at the time. I forget the name of the neighborhood, but we were just up the hill from where they shot Sister Act. One of my co-workers at the time had a harrowing ride down the hill.
We were just visited by some old friends who now live in the gold country. They belong to some state insurance plan. Some other friends were able to get insurance for a vacation place through USAA. They're a little further up the Russian from you, out of fire danger (so I have been told) but definitely susceptible to flooding.
@Old_Joe Our umbrella, $1 mil policy for this policy period (May, 2024 - May, 2025) is $386. As with all insurance, everything varies by location and values protected.
ADD: A few notes for our insurance protected period noted above.
--- Our home policy has an inflation clause covering several areas aside from the total replacement. The covered amount increased by 6.95%, BUT the premium amount increased by 13.9% --- Our auto policy coverage remained the same, BUT the premium increased by 8.3%. --- Our umbrella policy increased by 9.97% for the same $ million coverage.
We know about some areas of the country where insurance companies will no longer insure homes...CA and FL, and likely other areas. The fall back is state backed insurance. So, things become crazy for some with insurance. Auto insurance being the same story for some other reasons. I know an auto body shop owner who deals with insurance claims for most of his work. Generally, quite a few cars are considered 'totaled' from increased labor and parts increases. An example is decent, low mileage 2018 Chevy Impala: the vehicle has a low speed rear end of a vehicle in front, but enough to trigger the air bags, and crumple the front end of the car. Nominal prices for air bags (parts and labor) may be $1,500 each. There are 10 air bags in this model. The does not count the interior damage, not repairs to the front of the car. Locally, a low mileage 2018 Impala LTZ is $22K + tax. The repair may already be at $15K for air bags and interior repairs; not including front end repair. The insurance company issues a 'totaled' vehicle status, as the repair is not worth cost of replacement or cash pay off to the owner.
When entire large contiguous communities are at risk because of one single loss situation (especially weather or fire related) that model simply doesn't work.
ISTM dental insurance is a similar situation - there the insurance operates more like prepayments (you don't get much more out of it than you pay even when you make claims) because "everyone" gets dental care. At least everyone who buys insurance. It gets you negotiated rates and does spread some risk of catastrophic events. But even that risk sharing is limited because dental insurance payouts are usually capped at $1K - $2K.
Absolutely- we've had this coverage for over fifty years. I wasn't aware of the need until a friend was sued over a comment that his wife had made publicly. I don't recall the details of that situation, but their insurance did cover the lawsuit claim.
I wasn't aware umbrella insurance could be had for what reads like 'slander'.
Neither was I, but there it is right in my umbrella policy:
"Personal injury" means mJury arising out of one or more of the following offenses, ...
Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services;
One often hears that one should buy as much coverage as one has in assets. I don't have a better guideline, but that never sounded right to me. The supposed reasoning is that a plaintiff will look at the assets you have and sue you for that amount. But if you have insurance, wouldn't you be sued for the value of your assets plus the amount of insurance you have?
FWIW, the incremental cost of each $1M coverage above the base $1M amount is much smaller than the base premium. Some insurers won't issue an umbrella policy unless you have other coverage with them - I've wound up working with an independent agent to get a standalone policy (at a better rate!). And how much you pay can depend on underlying policies: Are you covering a home or are you a renter; how many cars do you have; what other things are you covering (e.g. motorcycle, RV)?
I just got renewal quotes for umbrella (up 24%) and homeowner (up 0.2% sic). I'm about to get my auto quote which I'm dreading.
@msf- thanks for the note about slander being covered under "Personal injury". Same with our State Farm policy. Now I'm wondering if a certain baseball fan has similar coverage...
We are facing changes in our home policy. Due to climate changes. Pacific Northwest is considerable drier than the previous decades. Wildfires occur more frequently and last longer. Many large insurance companies stop offer wildfire coverages in the state of California. Oregon is okay for now, but we can see wildfire coverage will disappear.
The cost for my auto insurance increased 8.98% from Jan 2023 to Jul 2023. The cost increased another 17.60% from Jul 2023 to Jan 2024! During this period, I drove the same vehicle and there were no blemishes in my driving history.
My homeowners insurance renews Jul 2024. I'm not looking forward to this bill!
We live in the Akron, Ohio area and use a friend for our auto and HO insurance who is an independent broker. Our coverage through him is with Grange Insurance.
Our HO renewed this past February which we pay annually, premium increased 3.7% from 2/23. Our auto policy also renewed this past February and which we pay every 6 months, premium increased 3.7% from 6 months ago.
In the past our HO has at times seen double digit % increases even though we've never had a claim.
You all have me thinking I should check out the cost of an umbrella policy now that we've reached a point in life where we actually have assets.
From an investment standpoint there is a growing and sometimes lucrative market for litigation funding. While currently restricted to accredited investors, this article explains how average retail investors can also get a piece of the pie.
“Non-accredited litigation finance investors - Even if you’re a mere peasant like 90% of the country, you can still put your humble earnings towards litigation finance …”
- ”Yieldstreet offers a variety of equity deals and asset-backed debt investments, from real estate investment loans to fine art. The fund is open to non-accredited investors with a minimum investment of $500, part of which is invested in litigation financing.”
- “The key to non-accredited litigation finance might lie in the blockchain. Ryval, co-founded by attorney Kyle Roche of Roche Freedman, aims to be the “stock market of litigation finance” and open new ways for investors of all levels to back plaintiffs in cases that capture their interests or hearts. While the Ryval market has yet to open, one of Roche’s clients provided a test case for an initial litigation offering (ILO). Apothio, a California hemp growing company, crowdfunded its suit against the Kern County Sherriff’s Department and raised almost $350,000 between October 2021 and March 2022. “ -
Thanks for the head-up guys. Just checked and my combined home & auto insurance is up since ‘23 by several hundred dollars per year. I have the premiums (same company) pulled from checking in monthly installments and sometimes I’m a bit behind the curve updating my paperwork - although I’m sure due notice was received.
Has anybody mentioned labor costs / labor shortages as a cause of rising auto repair costs? Body shops are very labor intensive. If we curtail immigration, be prepared for even higher labor costs.
Another point - I don’t know how it is where you live … But here the average size of what folks are driving has really gone up a lot over the past decade or two. While I normally drive the newer Accord, I’m always amazed how small my 2005 full-sized Silverado appears nowadays sitting in a crowded parking lot. At one time it would tower above most other vehicles - but no more! And more sheet metal & trim and larger tires & wheels means more (and more expensive) stuff to fix, as well as greater damage sustained by whatever else it happens to strike.
I always felt like I am over insured. I never bought life insurance, except when I was working and had term life through work. I used to max out on that (paying premiums beyond what the employers paid) because I thought my work was my biggest life risk!
I buy Dental insurance (Blue Cross) so I can get negotiated rates for service. They do not cover a lot of things (unlike the dental coverage I had thru work) and I do not think they will ever pay half of the premiums I pay them. I would rather pay my dentist more and not have dental insurance; he provides good service but I am stuck playing the game of delayed coverage and negotiated rates. My point is that Umbrella is there so you do not have to get your hands dirty with someone whose interests may not be aligned with yours.
BTW, for the sake of posterity, I deleted my posts in Week In Charts and left a notation for visitors to that thread. You guys feel free to delete your insurance posts (starting with my deletion) there and substitute with a "moved or deleted," whatever works for you.
Even if we try to live a passive, clean life, someone else can try to make claims on us unjustly (cause or amount or both). If you have an umbrella insurance, the insurance company is expected to fight them first (and thus your and the insurance company's interests are somewhat aligned while the party trying to make a claim on you may not have their interests aligned with you.) I see umbrella first as a deterrent / mitigation against false and excessive claims. Of course, when the umbrella pays a real covered claim, you also got covered for what you bought the protection for.
I would not be surprised if someone here posted an instance where having an umbrella hurt them. So, I do not know what the correct answer is. My instinct is that, on balance, umbrella insurance are good to have.
In a post above @Catch22 mentions that even if a vehicle is low-mileage and only a few years old insurance companies may consider it "totaled" if the air bags have deployed. Exactly that happened to a good friend of mine here in CA- his wife ran their SUV off the road and into a tree- no injuries, not too much front-end damage... not worth repair mainly because of the air bag deployment.
Auto insurance going up bigly due to tremendous increase in auto theft, EVs are extremely costly to repair when they get into a fender bender due to the electronics/sensors and batteries have to be drained is my understanding if major work required. Parts are more complex more electronics, more costly repairs. Labor rates have went up as well. Also lack of law enforcement means people are driving more aggressively, many without insurance and I'm guessing some zonked out on drugs. All adds up to bigly insurance increases. Nothing compared to property taxes that went up 20-30% where I live most of the time...kooky.
Should note that many well off folks do not keep up with their insurance as their wealth grows and they age. If you have 8 figure+ portfolio and you are insured by a company that you see advertising on TV you probably are not with the right company...likely want to talk to Chubb...
Looks like Baseball Fan and I posted at the same time & he knows more than this Article. My auto insurance renews in June. My experience with umbrella policies was that you had to have low deductibles before they would even discuss the umbrella. Am I mistaken?
Also, many don't really think about risk too much...maybe a good thing as we'd never leave the house if we did...ya got to ask yourself what would happen if: you went out to lunch with a friend and your are driving your car, stop at the light and some uninsured bozo god forbid runs into you and your friend gets seriously hurt....your friend is the bread winner in his family and cannot work for several months and has very high medical bills...you think you're not going to set sued? You better have a real strong umbrella coverage...
You are on the board of your HOA and of course the one knucklehead in your neighborhood doesn't like the decision the board made...and sues....
If you have kids, nieces or nephews who drive your car....you better have strong umbrella insurance....do you have a dog? Pool...operate water craft and maybe have a few cocktails on the water...true story, guy had a boat in the inland lakes nearby...drove over a kid in the water by the sandbar, kid was killed...tragedy....you don't think there wasn't a major lawsuit?
The higher umbrella coverage you have you can bet your arse that your insurance company will fight like tooth and nails to defend you....the senior attorney's will work the case...they don't want to pay up...
We all should get better educated on this stuff....
If you have 8 figure+ portfolio and you are insured by a company that you see advertising on TV you probably are not with the right company... Maybe, maybe not. GEICO reaches into 8 figures (barely):
Coverage limits on an umbrella policy start at $1 million and can go as high as $10 million for qualified applicants
With up to $10 million in coverage, a Liberty Mutual umbrella policy from Liberty Mutual Insurance casts a wide net of protection for people with virtually any amount of assets they’d like to protect.
USAA doesn't specify limits; it just says it will work with you on policies over $5M:
We offer personal umbrella insurance from $1 million to $5 million in coverage. Need more than $5 million? We can help you get it through the USAA Insurance Agency.
$5M is a pretty conventional limit for policies that are offered without the insurer looking into the applicant. As GEICO notes, after a certain amount, it's going to qualify you before it issues a policy. This makes sense. Just as you can't buy life insurance for an unrelated person (aside from an essential employee) because that invites murder and insuance fraud, companies are not going to issue high value umbrella policies without justification.
...likely want to talk to Chubb... Even Chubb has places it won't go. A Business Insider headline:
What's up with Trump and Chubb? Insurance giant balks at underwriting fraud-case bond days after blowback from E. Jean Carroll bond
Comments
Question for the group, I just purchased an umbrella policy. Do others have this insurance? It isn't that expensive, and it keeps you from losing a bundle in a law suit, for example someone badly hurt on your property or in a car accident. Regular HO and car insurance cover to a point, but if God-forbid you are at fault and sued for more than that coverage, it could hit hard on your life savings.
OK, that should get us off and running on Insurance matters.
Major insurance companies will not insure our house by the Russian River at Guerneville. I asked our neighbor, an attorney, who he was using, and they have also insured us now for a few years. I am really expecting that company to cancel one or both of us at some point, because if one house burns it is very likely that the other will also. If I was running the insurance company I would be very concerned about such exposure.
To repeat what I said above - When contiguous communities are at risk because of one single loss situation (especially weather or fire related) the present model simply doesn't work. And the fact that there have been no major fires for a long time in any particular area is really meaningless... that was the situation in almost every major fire in California in recent years.
My memory of the first such major incident of that type was the Oakland Hills firestorm of 1991. Ashes from that fire rained down on us out by the ocean in San Francisco. Prior to that, the Oakland Hills had never had a major fire either.
I've had an umbrella policy for several years now.
My 401K and Roth IRA have excellent creditor protection¹.
For assets outside of these accounts, the umbrella policy offers protection
against large lawsuits which are highly unlikely but potentially very impactful.
This policy provides peace of mind and it's relatively inexpensive as you have mentioned.
¹ IRA / Roth IRA creditor protection varies by state.
@MikeM
We have a $1 million umbrella policy, that applies to extra 'liability(s) that may come forth in a law suite, etc. I believe $1 mil is the common starting number. This policy is in effect for only home and auto extra coverage and is $386/year. I don't know how state and/or location in a state may affect this cost.
Additional- Mark, I really have no idea as to the circumstances regarding "slander" coverage. The "coverage and exclusion" sections of our present State Farm policy are very vague and unspecific- so I have to admit that I have no idea if that policy would cover slander. I'm mainly concerned about extra coverage in case of a vehicular accident claim. Perhaps another poster could add some knowledge to this question.
OJ
We were just visited by some old friends who now live in the gold country. They belong to some state insurance plan. Some other friends were able to get insurance for a vacation place through USAA. They're a little further up the Russian from you, out of fire danger (so I have been told) but definitely susceptible to flooding.
@WABAC - Yes, same on the western side of Twin Peaks... not to be soon forgotten.
Our umbrella, $1 mil policy for this policy period (May, 2024 - May, 2025) is $386.
As with all insurance, everything varies by location and values protected.
ADD: A few notes for our insurance protected period noted above.
--- Our home policy has an inflation clause covering several areas aside from the total replacement. The covered amount increased by 6.95%, BUT the premium amount increased by 13.9%
--- Our auto policy coverage remained the same, BUT the premium increased by 8.3%.
--- Our umbrella policy increased by 9.97% for the same $ million coverage.
We know about some areas of the country where insurance companies will no longer insure homes...CA and FL, and likely other areas. The fall back is state backed insurance. So, things become crazy for some with insurance.
Auto insurance being the same story for some other reasons. I know an auto body shop owner who deals with insurance claims for most of his work. Generally, quite a few cars are considered 'totaled' from increased labor and parts increases. An example is decent, low mileage 2018 Chevy Impala: the vehicle has a low speed rear end of a vehicle in front, but enough to trigger the air bags, and crumple the front end of the car. Nominal prices for air bags (parts and labor) may be $1,500 each. There are 10 air bags in this model. The does not count the interior damage, not repairs to the front of the car. Locally, a low mileage 2018 Impala LTZ is $22K + tax. The repair may already be at $15K for air bags and interior repairs; not including front end repair. The insurance company issues a 'totaled' vehicle status, as the repair is not worth cost of replacement or cash pay off to the owner.
ISTM dental insurance is a similar situation - there the insurance operates more like prepayments (you don't get much more out of it than you pay even when you make claims) because "everyone" gets dental care. At least everyone who buys insurance. It gets you negotiated rates and does spread some risk of catastrophic events. But even that risk sharing is limited because dental insurance payouts are usually capped at $1K - $2K. Neither was I, but there it is right in my umbrella policy: One often hears that one should buy as much coverage as one has in assets. I don't have a better guideline, but that never sounded right to me. The supposed reasoning is that a plaintiff will look at the assets you have and sue you for that amount. But if you have insurance, wouldn't you be sued for the value of your assets plus the amount of insurance you have?
FWIW, the incremental cost of each $1M coverage above the base $1M amount is much smaller than the base premium. Some insurers won't issue an umbrella policy unless you have other coverage with them - I've wound up working with an independent agent to get a standalone policy (at a better rate!). And how much you pay can depend on underlying policies: Are you covering a home or are you a renter; how many cars do you have; what other things are you covering (e.g. motorcycle, RV)?
I just got renewal quotes for umbrella (up 24%) and homeowner (up 0.2% sic). I'm about to get my auto quote which I'm dreading.
The cost increased another 17.60% from Jul 2023 to Jan 2024!
During this period, I drove the same vehicle and there were no
blemishes in my driving history.
My homeowners insurance renews Jul 2024.
I'm not looking forward to this bill!
Ben Carlson looks at auto insurance inflation.
There are several factors influencing rising costs.
https://awealthofcommonsense.com/2024/04/is-auto-insurance-becoming-a-crisis/
Our HO renewed this past February which we pay annually, premium increased 3.7% from 2/23. Our auto policy also renewed this past February and which we pay every 6 months, premium increased 3.7% from 6 months ago.
In the past our HO has at times seen double digit % increases even though we've never had a claim.
You all have me thinking I should check out the cost of an umbrella policy now that we've reached a point in life where we actually have assets.
“Non-accredited litigation finance investors - Even if you’re a mere peasant like 90% of the country, you can still put your humble earnings towards litigation finance …”
- ”Yieldstreet offers a variety of equity deals and asset-backed debt investments, from real estate investment loans to fine art. The fund is open to non-accredited investors with a minimum investment of $500, part of which is invested in litigation financing.”
- “The key to non-accredited litigation finance might lie in the blockchain. Ryval, co-founded by attorney Kyle Roche of Roche Freedman, aims to be the “stock market of litigation finance” and open new ways for investors of all levels to back plaintiffs in cases that capture their interests or hearts. While the Ryval market has yet to open, one of Roche’s clients provided a test case for an initial litigation offering (ILO). Apothio, a California hemp growing company, crowdfunded its suit against the Kern County Sherriff’s Department and raised almost $350,000 between October 2021 and March 2022. “
-
Thanks for the head-up guys. Just checked and my combined home & auto insurance is up since ‘23 by several hundred dollars per year. I have the premiums (same company) pulled from checking in monthly installments and sometimes I’m a bit behind the curve updating my paperwork - although I’m sure due notice was received.
Has anybody mentioned labor costs / labor shortages as a cause of rising auto repair costs? Body shops are very labor intensive. If we curtail immigration, be prepared for even higher labor costs.
Another point - I don’t know how it is where you live … But here the average size of what folks are driving has really gone up a lot over the past decade or two. While I normally drive the newer Accord, I’m always amazed how small my 2005 full-sized Silverado appears nowadays sitting in a crowded parking lot. At one time it would tower above most other vehicles - but no more! And more sheet metal & trim and larger tires & wheels means more (and more expensive) stuff to fix, as well as greater damage sustained by whatever else it happens to strike.
I buy Dental insurance (Blue Cross) so I can get negotiated rates for service. They do not cover a lot of things (unlike the dental coverage I had thru work) and I do not think they will ever pay half of the premiums I pay them. I would rather pay my dentist more and not have dental insurance; he provides good service but I am stuck playing the game of delayed coverage and negotiated rates. My point is that Umbrella is there so you do not have to get your hands dirty with someone whose interests may not be aligned with yours.
BTW, for the sake of posterity, I deleted my posts in Week In Charts and left a notation for visitors to that thread. You guys feel free to delete your insurance posts (starting with my deletion) there and substitute with a "moved or deleted," whatever works for you.
I would not be surprised if someone here posted an instance where having an umbrella hurt them. So, I do not know what the correct answer is. My instinct is that, on balance, umbrella insurance are good to have.
Should note that many well off folks do not keep up with their insurance as their wealth grows and they age. If you have 8 figure+ portfolio and you are insured by a company that you see advertising on TV you probably are not with the right company...likely want to talk to Chubb...
inflation-car-insurance-distracted-driving-costs
Looks like Baseball Fan and I posted at the same time & he knows more than this Article. My auto insurance renews in June. My experience with umbrella policies was that you had to have low deductibles before they would even discuss the umbrella. Am I mistaken?
You are on the board of your HOA and of course the one knucklehead in your neighborhood doesn't like the decision the board made...and sues....
If you have kids, nieces or nephews who drive your car....you better have strong umbrella insurance....do you have a dog? Pool...operate water craft and maybe have a few cocktails on the water...true story, guy had a boat in the inland lakes nearby...drove over a kid in the water by the sandbar, kid was killed...tragedy....you don't think there wasn't a major lawsuit?
The higher umbrella coverage you have you can bet your arse that your insurance company will fight like tooth and nails to defend you....the senior attorney's will work the case...they don't want to pay up...
We all should get better educated on this stuff....
That's what D&O insurance is for.
NOLO, What HOAs Need to Know About D&O Insurance
If you have 8 figure+ portfolio and you are insured by a company that you see advertising on TV you probably are not with the right company...
Maybe, maybe not. GEICO reaches into 8 figures (barely): https://www.geico.com/information/aboutinsurance/umbrella/protect-your-future/
Likewise, Liberty goes up to $10M: https://www.homeowner.com/insurance/liberty-mutual-umbrella-policy
USAA doesn't specify limits; it just says it will work with you on policies over $5M: https://www.usaa.com/inet/wc/insurance_home_umbrella?akredirect=true
$5M is a pretty conventional limit for policies that are offered without the insurer looking into the applicant. As GEICO notes, after a certain amount, it's going to qualify you before it issues a policy. This makes sense. Just as you can't buy life insurance for an unrelated person (aside from an essential employee) because that invites murder and insuance fraud, companies are not going to issue high value umbrella policies without justification.
...likely want to talk to Chubb...
Even Chubb has places it won't go. A Business Insider headline: https://www.businessinsider.com/whats-up-with-chubb-trump-insurer-balked-at-fraud-bond-2024-3
Arrests....2.6%
Prosecuted...don't make me laugh....
Arrest.
Prosecute.
Incarcerate.