“Oh he’s off in La La Land.”
Before the movie La La Land became all the rage, the term La La Land didn’t mean Hollywood.
Merriam-Webster – la-la land: a euphoric dreamlike mental state detached from the harsher realities of life
Is this explained in the movie? I haven’t seen it. I just figured since the movie is so hot right now, tying an otherwise humdrum article to a beloved movie, by the transitive property of linguistics, you will love this article.
Am I in La La Land when it comes to my umbrella insurance policy?
Wait, What is Umbrella Insurance?
Let’s rewind a bit. Actually, let’s just point you somewhere else:
- Part 1: Defend Your Money – My Decision to Get an Umbrella Insurance Policy
- Part 2: The Unknown Umbrella – Signing Up for My First Umbrella Insurance Policy
At the end of part 2 I was waiting to receive the fine print in the mail to see exactly what is covered.
Let’s pick up there.
The Fine Print
Part III – Exclusions
5. Business pursuits or business property of an insured unless covered by primary insurance described in the declarations. Our coverage is no broader than the primary insurance except for our liability limit.
Well that is pretty vague. Awesome. Now what?
A few more phone calls helped put my mind at ease. I do not believe my rental properties will be interpreted as a business property.
Two reasons. They are single family homes, not multi-unit businesses. And I have 4 or fewer, not a huge operation I run.
It isn’t exactly spelled out in the document though. Lawyers can argue anything they want – often laws or documents are created with enough wiggle room where they have creative license to interpret as they see fit.
At some point it comes down to trust. Do I trust that Geico will cover me in the event something goes wrong, not try to find some loophole? Yes.
However it isn’t a blind trust. I made sure I am following the intended use of the umbrella policy and verified the best I can.
Not Done Yet…
Umbrella insurance kicks in after your primary insurance. There are required limits for your coverage that are quite high.
I already upped my auto coverage, which was incredibly cheap.
However, I have to make sure I have $300k on my renters insurance (for where I live) and my homeowners insurance for both my rental properties.
Something tells me I don’t have nearly that much coverage…
How much is it going to cost to increase my limits?
The good news is this will provide an excuse to get quotes from a few different insurance providers. My rates have creeped up over the years and I’ve been too lazy to look into alternatives. Now is the time!
If possible, it might help to have the same insurance provider for both houses. They are in different states though, which could complicate matters. If anyone has a recommendation, please let me know!
Permission to be Blunt
What do you think … am I off in La La Land with my belief in my umbrella insurance coverage? Is it offering me the protection I hope it does?