Month 3 – Get Umbrella Insurance

The basic rule of thumb is at the very least $1M dollars. Plain and simple… just incase you hit grandma crossing the street. It should cost $200-500 dollars a year. Don’t waste too much time shopping around. Get something in place as soon as possible.

If your net worth is more than $1M or you have a higher liability profession you might need more $2-5M+.

How much do you really need? Well this is where you need to build personal relationships in our group to find others in a similar situation as you and calibrate yourself with those in the know.

Getting your umbrella insurance should take no longer than a 15 minute phone call. Use the remaining time you have to progress your passive investing knowledge to getting on the phone with 1-2 other people in our tribe. Keep this up throughout the year or make it up at this years Hawaii mastermind!

PS – Please email Lane@SimplePassiveCashflow.com who you got your insurance from, what amount for, and how much was it so I can create a list to share with other members.

List of providers:

• USAA
• State Farm
• Allstate
• Farmers

I polled our tribe in May 2020 and got the following results. [Update: These quotes are from 2019-2020. For my properties, I see insurance costs at $600 a door where now its $850 a door (2023)… which is about almost a 45-50% increase. Now I don’t know if that carries over to personal liability insurance but I am willing to bet its all connected and impacted by inflation.] Please email me to add your results to the below for others:

Accredited:

• $3M umbrella policy with USAA with a $266 premium
• $1M umbrella policy from USAA for $201.64 a year if you want to add that to the list. I had to bump up my auto liability insurance premium though.
• $2M umbrella policy w/ State Farm for $236/yr
• $4M through GEICO for $944
• Allstate 1M – 2 residences, 3 cars, 2 Mature Drivers. $394/yr
• $1M Allstate – ​300
• $5M CUP, $1000 annually. 4 properties (O’ahu). State Farm (Honolulu)
  
• StateFarm Insurance, $1M, $157 annual premium
• Travelers. $1mm coverage me and wife. 2 vehicles and 3 residences. $406 annual premium.
• $282 for $1M coverage with Geico (bundled with home & auto), up from $252 in 2019.

Non Accredited:

• Safeco, 1 million (I think), around $200
• Hawaii carrier $2M limits $225
• $1M through State farm for $361
• Geico. $1 million coverage. $106 annual premium. 1 driver, 1 vehicle, no rental properties
• Geico, $1 million coverage, $233 annually. 2 drivers, 2 vehicles, 3 rental properties. Hawaii.​​
• $1 MM policy from State Farm for $240/year
• $160 a year for 1M  through Travelers when bundled with my home. I had Nationwide in the past and it was around $180.

• $1M, $383/yr + $16 for house increasing home insurance policy to min coverage

• $2M – $634/yr+ $16 for house increasing home insurance policy to min coverage

• $5M – $1177/yr+ $16 for house increasing home insurance policy to min coverage