An Umbrella policy is a rate based on the underlying exposures (homeowners liability amount, # of autos on the policy along with Driving records, and extra toys like boats, pwc, motorcycles) You can pick and choose what you want as underlying coverage meaning what will be covered under the umbrella after those limits are exhausted, but in the end the savings of $20-$100 is not worth losing out on the extra million in coverage on any one particular item.
With that said your homeowners liability, auto liability and toy liability is based on where you live, age of drivers, previous history, credit score.......
the umbrella rate is a direct reflection of these rates.
when it comes to the boats, Carriers have different rates for sizes of boats and then as well as horsepower. Just because you say you don't drive it above a certain limit doesn't mean you, or someone else wont ever do that, it is the fact that it has the capability to do so.
If the extra cost of the umbrella is another $400 on top of what you are already paying for the umbrella, then there are multiple questions:
did they put an endorsement on your homeowners to accommodate that size of a boat and horsepower (would be part of the increase because a boat of that size would not be covered automatically under a homeowners) 2 if there is no primary boat liability policy and it is on the umbrella, the umbrella actually drops down to be a dollar one coverage meaning it acts like a primary policy and not excess which is what it is supposed to be
I would bring these two questions above to your agent. In the case of #2 above it might be cheaper to get a stand alone boat policy and then just add it to the umbrella, or just keep way it is.
I would personally want the umbrella coverage more on the boat then anything else because the exposures and dangers are that much more
Disclaimer: I am an insurance agent, but not trying to solicit your business, just trying to give some insight to the process
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Capt. of the "No Worries"
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