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Personal Umbrella Policy Denial

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  • Neuro Neuro 
    Participant
    Status: Physician
    Posts: 56
    Joined: 01/08/2016

    hi all,

    Can the forum shed some light on this? I applied and was denied the Umbrella Policy. The decision was made on multiple driving violations ( mostly minor in my opinion) over the past 5 years. They fall in the category of illegal parking, HOV/ Expressway restrictions and equipment violations. There were a total of 5 different violations between me and my spouse. Most of these were in a cross country driving trip a couple of years ago and driving through unfamiliar places and different states. There’s one by my spouse – where were where 16-20 over a 30 MPH zone – which might be a major violation. We were ticketed for that.

    I have two questions

    1- Is this a common reason for denial? Should I contact a different insurance company? I applied through the company which provides our auto and home insurance.

    2- How long before these things come off the record for Umbrella Insurance application? Our last violation was more than 18 months ago.

    Thanks in advance for the collective wisdom.

    #226489 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2477
    Joined: 01/03/2017

    I would definitely check around. For whatever reason the insurance carrier deemed you high enough risk that they didn’t want to deal with it. You may also check with the county/state that the violations occurred in and see what you can do to get them expunged. As a side note, I didn’t think non-moving violations (parking, seat belt, etc.) showed up on your record but it’s been a long time since I had to deal with any of this stuff so I’m sure things have changed.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #226494 Reply
    Liked by jfoxcpacfp
    Avatar bean1970 
    Participant
    Status: Physician
    Posts: 507
    Joined: 07/12/2017

    1) yes. they deemed you high risk so no obligation to insure you. you can try to contact a different company…the issue will be it is pretty difficult to find a stand alone umbrella. They are usually stacked on a pre-existing home or auto….if you try to shop for a new auto plan to stack an umbrella on you will probably run into same difficulty. …you might have more luck to get a new home owners if you can find the same company will stack an umbrella on top.

    2) hard to know. different violations are different in every state.

    #226581 Reply
    Liked by snowcanyon
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 836
    Joined: 02/06/2016

    We had an issue with umbrella cancellation when our teenage son had 2 accidents.  We had to shop around and then he got his own insurance when he went off to college and we were able to maintain coverage.  Do you have an insurance agent who can shop this to multiple carriers?

     

    #228203 Reply
    Liked by jfoxcpacfp
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7748
    Joined: 01/09/2016

    You might try checking with the companies that specialize in HNW clients: Chubb, Fireman’s Fund/Allianz, and PURE.

    As bean1970 said, your problem is mostly likely going to be finding a company that does not require you to move all other coverage to them. Are you willing to do that?

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #228212 Reply
    Liked by PhotonsRGR8
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2582
    Joined: 09/18/2018

    1) Follow Johanna’s suggestions.
    2) Have you AND your wife taken the defensive driving course?
    3) Did you get an answer from the underwriting? Five (considering parking and equipment) violations are insufficient.
    4) Five years history is fairly standard.
    5) In the future, use defensive driving courses when possible to keep moving violations off your record.

    Moving auto & home make a difference.

    #228225 Reply
    Avatar NYCdoc 
    Participant
    Status: Physician
    Posts: 25
    Joined: 08/24/2018

    You might try checking with the companies that specialize in HNW clients: Chubb, Fireman’s Fund/Allianz, and PURE.

    As bean1970 said, your problem is mostly likely going to be finding a company that does not require you to move all other coverage to them. Are you willing to do that?

    Click to expand…

    quick question Johanna, when are you considered HNW? is there a specific number or salary? or are all docs considered HNW?

    #228284 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2582
    Joined: 09/18/2018

    Home replacement cost $1mm including all coverages.

    #228294 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7748
    Joined: 01/09/2016

    You might try checking with the companies that specialize in HNW clients: Chubb, Fireman’s Fund/Allianz, and PURE.

    As bean1970 said, your problem is mostly likely going to be finding a company that does not require you to move all other coverage to them. Are you willing to do that?

    Click to expand…

    quick question Johanna, when are you considered HNW? is there a specific number or salary? or are all docs considered HNW?

    Click to expand…

    Doctors almost always fall under HI (high income) but not HNW, which is subjective. In general, I would say $2.5M up until you get to ~$10M – $15M, when you move to UHNW (Ultra HNW). The companies I mentioned occupy the space for both because mainstream ins co’s don’t have the underwriting capacity (not sure if I’m using the correct terminology) or connections to sustain expected HNW losses. These “big 3” also offer specialized policies for unique situations common to HNW and UHNW policyholders.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #228303 Reply
    Liked by NYCdoc, Tim
    Neuro Neuro 
    Participant
    Status: Physician
    Posts: 56
    Joined: 01/08/2016

    Thank you all. I will follow up on these suggestions.

    #228599 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4389
    Joined: 05/13/2011

    hi all,

    Can the forum shed some light on this? I applied and was denied the Umbrella Policy. The decision was made on multiple driving violations ( mostly minor in my opinion) over the past 5 years. They fall in the category of illegal parking, HOV/ Expressway restrictions and equipment violations. There were a total of 5 different violations between me and my spouse. Most of these were in a cross country driving trip a couple of years ago and driving through unfamiliar places and different states. There’s one by my spouse – where were where 16-20 over a 30 MPH zone – which might be a major violation. We were ticketed for that.

    I have two questions

    1- Is this a common reason for denial? Should I contact a different insurance company? I applied through the company which provides our auto and home insurance.

    2- How long before these things come off the record for Umbrella Insurance application? Our last violation was more than 18 months ago.

    Thanks in advance for the collective wisdom.

    Click to expand…

    I was denied the first time for a traffic ticket. I was able to buy it a year or two later when it dropped off my record.

    Yes, it’s common, because 80% of umbrella claims are auto related.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #228687 Reply
    Neuro Neuro 
    Participant
    Status: Physician
    Posts: 56
    Joined: 01/08/2016

    Thanks Jim.

    #228754 Reply

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