BoatBanter.com - View Single Post - Umbrella policies being gutted by State Farm

JimH

"Vic Smith" wrote in message
...
On Mon, 16 Jul 2007 20:37:12 -0400, Gene Kearns
wrote:

On Mon, 16 Jul 2007 18:21:12 -0400, "JimH" ask penned the
following well considered thoughts to the readers of rec.boats:

"Hamish" wrote in message
thlink.net...
I am in California. I just got the renewal bill for my personal
umbrella
policy, and the "Important Notice" brochure that always comes with it
said,
"The definition of insured is revised so that a person or organization
using an insured's auto, RV or watercraft is no longer covered." So,
when
I let a valet park my car, he's not covered. If I loan my car to a
friend,
relative, or neighbor, they're not covered. If my ski boat was
running -
it isn't right now - and I let a friend drive it to tow me, he's not
covered. (Yes, I know that my "underlying" car insurance covers them up
to
the limits of that policy, but those limits are only enough to pay for a
stubbed toe.)

I called my agent and she was totally unaware of the change, and asked
me
to fax her a copy of the brochure. Then, once she called the
underwriters, she still seemed unconcerned. She was happy to quote me
the
increase in premiums to bring each of my car polcies up to the same
limits
that were formerly covered by the Umbrella. An additional $206 per
year.
I will pay the money, because I own a home and it is vital that I
remain
insured up to a high limit.

I have taken the trouble to write this post because I think that a lot
of
other people will fail to read the "Important Notice" (the brochure is
17
pages long), will simply write the check like they do every other year,
and will end up with a big gap in their coverage. And their insurance
agent won't take the trouble to call them or write them a personal
letter
telling about the big gap that just opened up in their coverage. So,
look
out! And warn your friends.

Ham

1. The valet company should have their own insurance.

*You* pay insurance premiums to make sure *you* are covered. Don't
assume that anybody else has you covered (they don't, though they may
try to indemnify themselves). If you have to take them to court, be
sure that you can afford all of the justice that you feel you are
entitled to....

2. Don't loan your car or boat to anyone outside your family.

Ok, I'll buy that, but it doesn't cover any non-loaner legitimate use
of your vehicle. Boats? Marina re-positioning your boat to another
slip (see? says they can do it in the lease agreement..... Personal
injury? You have a dangerous boat! Damage? See no evil, hear no
evil...... see #1 above)

3. Why should the insurance company cover anyone but you and your
family?

Because there *are* no-loaner issues to be dealt with....

So what is the big deal?

You have equity that other people want.... it really is a BIG DEAL!

Bingo. $206 yearly premium increase for the same coverage.

--Vic

Why in the world would you want to extend your general liability umbrella
coverage to any one but your family?

If you were smart...........you would pay zero extra as the changes have no
effect on you.