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To "umbrella" or not to "umbrella"...
Old 05-10-2016, 09:33 AM   #1
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To "umbrella" or not to "umbrella"...

What is the common wisdom as to the need for umbrella insurance for someone who is retired with a few millions in assets?

Would be great to get an actual YES (I have one) or NO (I don't have one) in the answer and the rationale behind that answer...
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Old 05-10-2016, 09:39 AM   #2
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YES (I have one $2M) cause it's cheap
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Old 05-10-2016, 09:42 AM   #3
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Yes $1m - cheap and offers a good bit of protection.
Got to protect those hard earned assets.
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Old 05-10-2016, 10:50 AM   #4
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The Common Wisdom here is very common, probably universal, and very, very wise. Get it.
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Old 05-10-2016, 10:55 AM   #5
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YES for me as well

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Old 05-10-2016, 10:59 AM   #6
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Yes I have one. For $200/year on $1M policy, it's worth it.
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Old 05-10-2016, 10:59 AM   #7
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YES (I have one)

Relatively cheap (I need to call now that only one child still in the nest, and she is gainfully employed - rates may be lower?).

Also, I don't buy the 'get enough insurance to match your net worth' guideline. You need enough insurance to protect how much you might get sued for. Example:

You have $1M NW, you buy $1M coverage. You get sued for $2M. They take your $1M insurance, and your $1M nest egg. You needed $2M coverage.

Of course, that's hard to predict, so they use the fairly worthless guideline. It doesn't have to be right, it's easy (like the guideline of needing 80% of pre-retirement salary as post-retirement income!)!

-ERD50
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Old 05-10-2016, 11:06 AM   #8
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Yes I have it.

It's cheap. $162 per year plus a small amount to bring other policies' liability limits up to the required levels.

So I have $1,000,000 on home policy plus $1M umbrella. On auto it's $500,000 plus $1,000,000 umbrella.

Should cover almost all liability for me.
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Old 05-10-2016, 11:15 AM   #9
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+1 from me, too, but for a different reason:

Standard home & auto insurance policies have a clause giving the insurance company "right of subrogation". This means that the insurance company decides whether to fight a claim or accept and pay. If I'm hit with a $1 million claim and have just $300 thousand limits, the insurance company can just accept the judgement, pay their $300 k and walk away - leaving me with no recourse other than to pay the large balance.

I want the insurance company on the hook for a BIG potential payout, just to keep their lawyers working in my interest!
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Old 05-10-2016, 11:26 AM   #10
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Yes, we have it. But honestly we have it because parents required us to get it before we became part of a family business. Now many years later, I suppose we would keep it if we were given an option to help protect the assets we've collected over the years. As others have said, it's pretty inexpensive.
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Old 05-10-2016, 11:28 AM   #11
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We have it, 2 mil worth. It costs us around $800 which is not so cheap but still worth it to us.
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Old 05-10-2016, 11:36 AM   #12
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Yes - equal to total assets (2m) for around 185 yr bundled with homeowners, auto, specific items ($2 month) = 178 month total
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Old 05-10-2016, 11:38 AM   #13
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Yes- we have $2 million.
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Old 05-10-2016, 11:48 AM   #14
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in a society where people are sue happy and everyone wants to sock it to the rich, you bet I have it.
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Old 05-10-2016, 11:50 AM   #15
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Quote:
Originally Posted by karen1972 View Post
in a society where people are sue happy and everyone wants to sock it to the rich, you bet I have it.
As my attorney says: "Anyone with $10 and no good reason can sue you".
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Old 05-10-2016, 12:09 PM   #16
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Yes for me as well.
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Old 05-10-2016, 12:10 PM   #17
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I have one also and it is cheap. But you need to max out the liability on all your other policies (vehicle & homeowners) first and that costs more than the umbrella.
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Old 05-10-2016, 12:20 PM   #18
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Yes, $2 million.
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Old 05-10-2016, 12:29 PM   #19
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Yes, we have it. $6M worth to cover net worth and potential troubles with tenants.


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Old 05-10-2016, 12:42 PM   #20
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Yes I have it. $2M.
Why? Because we have an onsite rental unit (detached granny flat in our back yard). I also have 2 teenagers under roof. I also want the insurance company lawyers involved in fighting any claims and/or settling for the lowest amount.
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