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

Calif Bill

"JimH" ask wrote in message
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"Hamish" wrote in message
ink.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.

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

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

So what is the big deal?

Someone steals your car. You are liable for the damage the car causes.
That is one reason to have an umbrella or high limit coverage if you have
large asset base. My secretary years ago told of her boyfriend getting sued
because his motorhome ran into another auto while in the dealership being
serviced. If you do not get enough money from the dealership, you also sue
the owner of the vehicle.