How Many Here Have Umbrella Liability Coverage?

[TNBigfoot]

With all the assets we all,work so hard to accumulate for retirement, an umbrella policy would seem to make sense. I can imagine that a personal injury lawyer would go after those assets vigorously.

Do you maintain a policy and if not, why? I am considering buying coverage however it is another expense to add to a tight budget in retirement.

 

[braumeister]

Yes, many here have umbrella coverage.

Do a search on "umbrella" here and you'll find quite a few threads with discussion of the pros and cons.

 

[ponyboy]

Most everyone who is financially sound has an umbrella policy. Its cheap for the amount of coverage you can get.

We have a $1million policy...which makes sense since we have around that in NW. I think we pay around $120/year. Not sure if age has anything to do with it...we're 34/35 (I dont believe it does.)

When our NW increases ill buy more coverage. Just another piece of mind.

 

[ncbill]

Yes, $2 million for ~$500/year.

High because of an "inexperienced driver" on the policy.

Our state lets insurers penalize any new driver (teen or otherwise) for the first 3 years on both auto & umbrella policies.

 

[RunningBum]

If your budget is that tight maybe you aren't ready for retirement?

Yes, I have it.

 

[Car-Guy]

yes

 

[pb4uski]

Yup... my insurer has $2 million reasons to provide me with a vigorus defense should I be sued... costs me $341 last year.... cheap peace of mind.

 

[COcheesehead]

Yep. Several million worth. Around $250 year for a household of two 50 somethings.

 

[iloveyoga]

Yes $2M

 

[Dtail]

We have 2mm which at 600 per yr is more expensive in FLA.
I would guess more folks on this forum have it than not.

 

[Mo Money]

Yep. 2MM in umbrella coverage. NW is considerably higher, but I figure 2MM provides a big enough cushion for a meaningful payment of a verdict or settlement. Since 90% of all cases settle, 2MM is likely to be enough to satiate most plaintiffs and their lawyers. It is also high enough to cover the cost of my defense.

 

[Dawg52]

Yes $2M @ ~$400/yr.

 

[Newventurer]

Yes, and you may be required to raise the limits on other areas of your coverage to add it.

 

[COcheesehead]

Yep. 2MM in umbrella coverage. NW is considerably higher, but I figure 2MM provides a big enough cushion for a meaningful payment of a verdict or settlement. Since 90% of all cases settle, 2MM is likely to be enough to satiate most plaintiffs and their lawyers. It is also high enough to cover the cost of my defense.

Some folks advocate for not only covering assets, but future income streams that can be attached in a settlement.

 

[big-papa]

Yes. $2M

 

[gerntz]

Approx. equal to our NW.

 

[PoorOldCountryBoy]

Peace of mind for a few hundred a year. It's a no brainer.

 

[garyt]

Anything special to look for in a policy, or are they all pretty much the same.

 

[Helen]

Approx. equal to our NW.

Do you have much money in 401ks and IRAs? They are pretty much protected from lawsuits.

As an aside, I don't let too many people know I have an umbrella policy.

 

[Markola]

Some folks advocate for not only covering assets, but future income streams that can be attached in a settlement.

How is that done?

 

[COcheesehead]

How is that done?

By how much you take out.

Also remember some assets are not attachable in a settlement.

 

[Crabby Mike]

Mine is through the same company (Allstate) that has the rest of my policies. Theoretically, you save some money that way, as they coordinate the coverages. Or maybe that's just what they're telling me ...


Anyway, either $2 or 3 million now, I don't recall.

 

[kgtest]

Do you have much money in 401ks and IRAs? They are pretty much protected from lawsuits.

As an aside, I don't let too many people know I have an umbrella policy.

If they ask I tell them I'm uninsured. Unless its legit. One time someone got beat up on my property, I had nothing to do with the incident except that it happened in my yard. The person asked for my insurance info and I told them since it was a townhome, I didn't hold a policy, but the association might.

Saved myself the hassle. never saw or heard anything again. The best way to win litigation is by avoiding it in the first place.

 

[Another Reader]

With rentals, the need is obvious. I carry two policies with a combined total more than the net worth.

 

[ERD50]

Some folks advocate for not only covering assets, but future income streams that can be attached in a settlement.

How is that done?

By how much you take out.

Also remember some assets are not attachable in a settlement.

I'll say it again - an umbrella policy does not "cover your assets" (or income stream).

If you have $2M in assets, and a $2M policy, and get a judgment against you (I think that's the right term) for $4M - you are broke, they take $2M ins plus your $2M.

There's no magic number based on NW. It's similar to the 80% income 'guideline' for retirement. It's easy, but not meaningful.

-ERD50