I read this great thread on umbrella insurance
Curious about umbrella liability policy experience
and am considering getting it, but don't know if it makes sense for me. If my retirement account is actually shielded as was mentioned in that thread, then the rest of my net worth is not that much. But I am in a profession that is frequently sued. Let's say NW is $50,000 (excluding retirement) and I get sued for $3 million. If my occupational insurance covers $1 million then I'd be responsible for $2 million so it would seem to make the most sense to just declare bankruptcy for the $50,000. On the other hand maybe it's worth the peace of mind to just get an umbrella for $1-$2 million depending on how much it costs.
Does it make sense to get umbrella insurance with low net worth? It seems that people decide umbrella insurance amount based on net worth.
Also it was mentioned in the other thread that ppl with umbrella seemed less likely to get sued. But wouldn't it be the opposite, because if someone had $2 million umbrella, isn't this money that becomes accessible to someone in a lawsuit, versus someone who didn't have umbrella insurance and low assets? Is it possible for anyone to find out how much umbrella insurance one has?
Is the price of the policy based on net worth?