I have a SFH and house hacking a 2-Unit and insured through State Farm. I had an auto accident 2 years ago. State Farm declined my Umbrella Policy because I guess they require you to be accident-free for 5 years. I am going to reach out to other providers for a $1M Umbrella but the Stare Farm agent told me to consider just increasing the liability on each property to $1M, which would be a $80 annual increase total. Note that I do have an 18yo daughter under my auto insurance.

    My question is: is there a major downside to choosing the increased liability path through my properties vs an umbrella policy?

    Umbrella Policy vs Increased Liability Coverage
    byu/JackfruitBubbly4947 inrealestateinvesting



    Posted by JackfruitBubbly4947

    1 Comment

    1. the increased property liability will only apply to incidents that involve that property.

      it also won’t cover driving which is a major source of liability.

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