Calculating Personal Liability Coverage

[frayne]

In glancing over the liability coverage thread posted a few days ago it looks like for the most part folks carry 1 ,2 or 3 million in coverage. Just curious how one calculates how much coverage to carry.

I used to carry it but dropped it as I didn't see the value of it. I view most insurance like paying the Mafia protection money.

If I carry $10 million in liability and lose a $20 million dollar judgement, what good was my coverage. Is it really just a false sense security that makes one sleep better at night ?

Educate me and what am I missing ?

 

[photoguy]

There's some discussion of it here: http://www.early-retirement.org/forums/f28/how-much-liability-insurance-do-you-carry-75440-2.html

I think the post by Del Q is informative (see page 2) regarding judgements over liability limits.