Personal Liability insurance

[athena53]

They told me their umbrella policies were only auto-related.

I'm a retired actuary and this sounds strange. Every umbrella policy I've seen has provided multiple types of coverage. The ones I've purchased were all auto plus homeowners. Otherwise, why not just buy higher auto liability limits?

One reason the umbrella insurer likes to provide the underlying coverage as well is that in the event of a major claim there's no argument as to how a settlement will be shared between the primary and umbrella insurers. It also means that the coverage wording is consistent on both policies. I've heard, for example, that some of the cheaper auto policies don't use standard wording for who's covered if you loan your car out and they loan it to someone else, for example. Umbrella insurers want to avoid having to "drop down" and pay the full claim on a case covered by their umbrella wording but not by the primary policy.

 

[Badger]

What if you have a revocable living trust? Would this protect your assets? Is anything already protected from liability suits - home, car, pension, IRA?

Cheers!

 

[38Chevy454]

What if you have a revocable living trust? Would this protect your assets? Is anything already protected from liability suits - home, car, pension, IRA?

Cheers!

I am not a lawyer, but this seems to only protect assets. You could still be personally on the hook for a substantial liability payment.