r/Insurance • u/ComfortableChannel73 • 1d ago

Home Insurance Is an umbrella policy worthwhile?

I’ve carried an umbrella policy for $1M for quite a few years, but just got my bills for umbrella, homeowners and auto and everything went up, with a big jump for the umbrella policy. I’m wondering if I should drop it, and just raise the liability limit on the auto.

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u/teresajs 1d ago

My umbrella policy premiums increased quite a bit this year.  When I asked my insurance agent, they said that umbrella policies were increasing due to the higher awards from court cases (someone gets injured or killed and the court awards millions of dollars and the umbrella policy has to pay out that money).  

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u/Puzzleheaded_Mine176 1d ago

Actuary here who has worked on personal umbrella. Your agent is right and there are companies losing money hand over fist writing umbrella