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Old 04-17-2012, 06:39 PM   #61
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Thank you all for the guidance in this thread. It motivated me to investigate further and I found out it was a two step process.

1) Had to increase my base auto insurance to 250k/500k liability - cost additional $50/year two vehicles
2) Excess liability to $1 M cost $170/year.

Seems like a reasonable cost of $220 year. My conclusion is that Ins companies must have some pretty sharp lawyers that fight tooth and nail so that they hardly ever pay up and as a result premiums are largely icing on the cake for the Ins companies.
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Old 04-17-2012, 07:33 PM   #62
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With regard to claiming your daughter as a dependent, the facts are the facts whether you claim her or not.
My response would be "Nah, she's not our dependent, we're just nice parents who gift our offspring." She has a college scholarship, a monthly NROTC stipend, and (soon) her own shared lodging and her own transportation.

The advice is coming from the company that would have to handle the lawsuit. And notice that they suggested we take the cheaper alternative, when they could've scared us with lawyer talk.

She's been on our policy for over three years and we haven't paid a single penny in higher premiums. They could've socked it to us anytime they wanted to. We explained it more than once. But having three drivers for two cars, and no collision/comprehensive coverage, allowed them to cut us the slack.

I'm not sure that a lawyer would let facts stand in the way of their prosecution or their defense. It'd be the behavior of a young adult whose parents might or might not be subsidizing her independence. Perhaps the question would be more clearcut if the age was 21 or 25, but it's probably clear enough at 19+.
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Old 04-18-2012, 07:26 AM   #63
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Thank you all for the guidance in this thread. It motivated me to investigate further and I found out it was a two step process.

1) Had to increase my base auto insurance to 250k/500k liability - cost additional $50/year two vehicles
2) Excess liability to $1 M cost $170/year.

Seems like a reasonable cost of $220 year. My conclusion is that Ins companies must have some pretty sharp lawyers that fight tooth and nail so that they hardly ever pay up and as a result premiums are largely icing on the cake for the Ins companies.
Your's is more reasonable than mine.

My quote is $82 to increase my home liability to $1m and vehicles to $500k and then $367 for a $1m umbrella. Still worth doing in the whole scheme of things, but significantly more than your deal
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Old 04-18-2012, 07:35 AM   #64
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Lots of good insights. I'm reminded of something my father used to say...you hope to never need insurance, but if you do you'll wish you had the best money could by. I know a lot of people who never considered that their investments and home equity were way unprotected in the event of some weird accident that opened up the door to financial ruin.
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Old 04-18-2012, 12:15 PM   #65
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Your's is more reasonable than mine.

My quote is $82 to increase my home liability to $1m and vehicles to $500k and then $367 for a $1m umbrella. Still worth doing in the whole scheme of things, but significantly more than your deal
This thread also triggered me to look into it. My quote was similar to EJMANs...

About $50 to up the liability limits on auto/home. And $199 for the $1M policy.

that included one rental home. The rental kicked up the quote a bit. I think having a dog kicked it up too. (It was one of the questions asked.)
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Old 04-18-2012, 02:46 PM   #66
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When you hurt a relatively young person permanently, lifetime medical costs can roll up to a very large number very quickly. I started the process of purchasing an Umbrella policy very soon after my mock jury experience.
Exactly!!! This is the type of thing that worries me and why we have the policy. Could be any person on your property who gets hurt, a contractor, a friend, relative, mail carrier, newspaper delivery person, etc. The thought of losing my whole life's savings made me get a policy...which we've now had for about 10 years.
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Old 04-18-2012, 02:55 PM   #67
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Exactly!!! This is the type of thing that worries me and why we have the policy. Could be any person on your property who gets hurt, a contractor, a friend, relative, mail carrier, newspaper delivery person, etc. The thought of losing my whole life's savings made me get a policy...which we've now had for about 10 years.
I could be wrong on this, and it may vary by state, but if an employee of a contractor gets hurt working on your property and the contractor is unlicensed and/or does not carry worker's comp, I believe you are on your own. As in your insurance carrier will say, "sorry, not our problem." Anyone know otherwise? This is why you need to be careful and hire only properly licensed contractors.
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Old 04-18-2012, 03:00 PM   #68
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I could be wrong on this, and it may vary by state, but if an employee of a contractor gets hurt working on your property and the contractor is unlicensed and/or does not carry worker's comp, I believe you are on your own. As in your insurance carrier will say, "sorry, not our problem." Anyone know otherwise? This is why you need to be careful and hire only properly licensed contractors.
Not sure...we'll let others weigh in.

However, what if they ARE insured, but you were grossly negligent? In that case, even the contractor's insurance may refuse to pay.

"Hey, my electrician was working on your wiring, and he both told you not to flip any breakers and he put a piece of tape over the breaker box door so you could not open it...but you decided to remove the tape and flip the breaker anyway in spite of his warnings. He got shocked, fell from the ladder, and broke his clavicle..we're not going to ask our insurance to pay for your stupidity"
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Old 04-18-2012, 03:32 PM   #69
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Finance Dave: in that case (and I'm not a lawyer) I'd guess your insurance could be held to pay (or you sans insurance). After all, it was your act of negligence. In all likelihood, his workers comp would pay for the broken clavicle and then his wife would find a lawyer to sue you for all you're worth because his, ahem, love performance was diminished by the trauma!
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Old 04-18-2012, 06:55 PM   #70
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Umbrella is too expensive for me, probably because I have an 18 year old son that drives. Believe it or not I have $2 million liability on my auto policy and $1 million on my homeowners and it's not too expensive. I tried to reduce those limits to $500k and replace with a $3 million umbrella but the net cost increase was well over $1,000.
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