personal liability policy yes or no?

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frank

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I have a one million dollar umbrella liability insurance policy. I am trying to decide whether I need this or not. I was wondering if any of you have this coverage and if you think it is necessary. I had it when the kids were younger and driving, but they are grown and gone. let me know what your views are. thanks

frank
 
We have an umbrella policy, and while I'd love to drop it, I probably never well. You could still have a wreck, someone could slip & fall on your property, etc. I've been told to have coverage equal to your net worth.

I was sued by a kook who was buying a house from us, and the umbrella policy paid all the legal fees and unleashed a team of nasty pit bull lawyers on this guy, and got the case dismissed with prejudice. (long, long story)

Anyway, obviously it's your call, but I sleep better knowing I have it.

Umbrella Insurance Policies: Why You Might Want That Extra Protection - DailyFinance

Your retirement funds, investments, savings and even your future earnings are at risk if a judge allows someone to garnish your wages to pay off a settlement. In some states, the equity in your home can be part of the judgment and you would be forced to sell your home to pay someone who sues you.
Click to expand...
 
Yes we have umbrella coverage, and yes we think it is necessary.
 
A million dollars in liability coverage for about $15 a month? I'm pretty sure I can easily carve $15 a month out of the budget before I dropped that.
 
Definitely yes. Pretty cheap for the peace of mind it provides.
 
I carry a 2MM limit and sometimes wonder if I should bump it up.
 
Yes we have one and will probably drop it once the last kid is out of the house.

Sent from my Nexus 7 using Early Retirement Forum mobile app
 
Yes, I figure it protects me if I'm in a major auto accident above my auto insurance limits, someone slipping on the ice at my house, accidentally hitting someone with a golf shot, running into someone on a ski slope, and all kinds of other risks I can't predict. I agree the risks are less with no children at home anymore, but they are still there. Unlikely to happen, but it's not a very high cost either. I'm further comforted by SumDay's verification of what I'd heard about getting great legal support if you are sued.
 
RunningBum said:
I'm further comforted by SumDay's verification of what I'd heard about getting great legal support if you are sued.
Click to expand...

I'd heard that too and it stands to reason that if the insurance company is potentially on the hook for a million or more that is going to get a fairly high level of interest.

We have a $1 million policy and I too was thinking of bumping it up a bit.
 
I just bumped up my policy to $5M. It wasn't that much more, and definitely worth the peace of mind to have it.
 
Hmm... My umbrella is only for $1M, and I am paying more than $500/yr. Something is wrong!
 
NW-Bound said:
Hmm... My umbrella is only for $1M, and I am paying more than $500/yr. Something is wrong!
Click to expand...
I'm sure those six pit bulls, two trampolines, your 10 meter diving board plus your sky diving, rock climbing and auto racing hobbies have some impact on your premium.
 
I've heard some say not to over do it either for the following reasons. Here is a link to the argument. I have a 1 million policy and my agent has pestered me to up. Thought about it, but haven't done it.

How Does An Umbrella Policy Work And How Much Does It Cost? | Financial Samurai



How much insurance you have can easily be found via public records. If you are deemed at fault in an accident, by the time a lawyer calls you they will know exactly how much insurance coverage you have. If you have a net worth of $1 million, but have an umbrella policy of $5 million, guess what? The lawyer is going to be way more motivated to go after $5 million!

The irony is, if you had no umbrella policy and only an auto insurance liability coverage of $300,000, the lawyer may not want to pursue, or will go for a maximum of $300,000, even if you have millions of dollars in net worth. This now becomes a game of how good you are at hiding your assets!

Insurance companies also don’t want you to have more umbrella policy than you need due to their liability reasons obviously. You pay the monthly or yearly premiums, but they pay the full amount. The good thing to note is that the higher your umbrella policy, the more inclined your insurance company will be to fight for your rights!
 
To the OP: I have umbrella coverage and can't imagine dropping it unless I had no assets. Kids being gone might be a factor in how much coverage I had but if I only had a million I certainly wouldn't drop it.



NW-Bound said:
Hmm... My umbrella is only for $1M, and I am paying more than $500/yr. Something is wrong!
Click to expand...

Shop around. We have an umbrella policy and this year the premium was going up significantly. I had my agent look around and ended up the same coverage for less than half of the upcoming premium.
 
For $175 a year my million dollar umbrella is my little insurance blankie :)
 
Like other, I bumped up more 1 million in coverage.......currently at 5m.
Cheap if you have a reasonable number of assets.
 
Dawg52 said:
I've heard some say not to over do it either for the following reasons. Here is a link to the argument. I have a 1 million policy and my agent has pestered me to up. Thought about it, but haven't done it.

How Does An Umbrella Policy Work And How Much Does It Cost? | Financial Samurai



How much insurance you have can easily be found via public records. If you are deemed at fault in an accident, by the time a lawyer calls you they will know exactly how much insurance coverage you have. If you have a net worth of $1 million, but have an umbrella policy of $5 million, guess what? The lawyer is going to be way more motivated to go after $5 million!

The irony is, if you had no umbrella policy and only an auto insurance liability coverage of $300,000, the lawyer may not want to pursue, or will go for a maximum of $300,000, even if you have millions of dollars in net worth. This now becomes a game of how good you are at hiding your assets!

Insurance companies also don’t want you to have more umbrella policy than you need due to their liability reasons obviously. You pay the monthly or yearly premiums, but they pay the full amount. The good thing to note is that the higher your umbrella policy, the more inclined your insurance company will be to fight for your rights!
Click to expand...

Can anyone confirm this?
 
We have a two million dollar umbrella insurance policy, wouldn't leave home without it. Wouldn't let anyone step on our property without it. Cost is $401 per year.
_________________________________
Más sabe el diablo por viejo que por diablo
 
We have $1 million and will increase to $2 million when our net worth surpasses $1 million. Silly not to have the protection when it's so cheap.
 
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