Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 07-31-2018, 08:16 AM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
Quote:
Originally Posted by MJ View Post
I know this is personal decision but I thought I would ask this anyway.
Right now, my total liability protection is $500,000 over my exposed assets.
Is it overkill to get another $1,000,000 (next increment) beyond your total exposed assets or I'm I wasting an extra $80/year? My wife and I don't live a liability exposed lifestyle, no guns, normal driving, live in a condo, no drinking, in other words, a boring normal life .

It is a personal decision and only you know your complete exposure.
Personally, I don’t mind paying for a bit more coverage than I might need when looking at exposure. It’s relatively cheap insurance and uses the insurance company’s attack dog lawyers if needed.
Dash man is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-31-2018, 09:22 AM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,422
Quote:
Originally Posted by Ready View Post
Umbrella policies typically range from $1M-$5M. So an attorney could guess that the most the policy may cover would be $5M, but they would have to do some discovery to find out for sure. There is a big difference between $1M and $5M.

But I wouldn't overthink the idea of an attorney suing for $5M just because you have it. In practice it doesn't work that way. A jury still has to find damages totaling $5M which is highly unlikely unless there was gross negligence.
You're at fault for an accident which kills a breadwinner for a family who was making a good salary.

The survivors and their lawyer won't seek to sue for maximum damages?
explanade is offline   Reply With Quote
Old 07-31-2018, 10:50 AM   #43
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 4,610
Quote:
Originally Posted by explanade View Post
You're at fault for an accident which kills a breadwinner for a family who was making a good salary.

The survivors and their lawyer won't seek to sue for maximum damages?
Bird in hand vs. two in bush.

A company I worked for over a decade ago faced a lawsuit by a badly-injured plaintiff who rejected the insurance company's offer (~$1 million IIRC)

So the case wound through federal court for the next 5+ years, with the plaintiff (sole breadwinner for their family) losing at trial.
ncbill is offline   Reply With Quote
Old 07-31-2018, 11:12 AM   #44
Full time employment: Posting here.
 
Join Date: May 2011
Posts: 873
We have a $2 million umbrella policy "just in case" for around $350 per year. It gives us a peace of mind. No questions asked from the insurance company.
kimcdougc is offline   Reply With Quote
Old 07-31-2018, 03:03 PM   #45
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 3,995
Quote:
Originally Posted by explanade View Post
You're at fault for an accident which kills a breadwinner for a family who was making a good salary.



The survivors and their lawyer won't seek to sue for maximum damages?


Yes they will. And if you were drunk while driving they will get a big payout. If it was just a typical accident that would not rise to the level of gross negligence.
Ready is offline   Reply With Quote
Old 08-01-2018, 12:58 AM   #46
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 4,661
Just an update on the question of whether one’s trust needs to be a named insured on umbrella policy if one’s assets are held in the trust. Our trust attorney confirmed today what our Allstate agent had told us - ie as long as the trust’s only trustees are DH and me, there is no need to name the trust as an additional insured. All of our insurance policies will cover DH and my property and liability, even if trust-owned property is involved in the claim. The trust is transparent to the insurance company because DH and I are in complete control of it.
Scuba is offline   Reply With Quote
Old 08-01-2018, 08:34 AM   #47
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 3,995
Quote:
Originally Posted by Scuba View Post
Just an update on the question of whether one’s trust needs to be a named insured on umbrella policy if one’s assets are held in the trust. Our trust attorney confirmed today what our Allstate agent had told us - ie as long as the trust’s only trustees are DH and me, there is no need to name the trust as an additional insured. All of our insurance policies will cover DH and my property and liability, even if trust-owned property is involved in the claim. The trust is transparent to the insurance company because DH and I are in complete control of it.
I'm sure your attorney knows a lot more than I do about this, so it's probably good advice. But somehow it still doesn't sit well with me. Allstate was the only insurance company I spoke with who refused to name the trust on our policy. Every other company not only said no problem but confirmed that we absolutely need to do so. So something doesn't seem completely right here.

We did end up moving the policy from Allstate to Amica this week, so that solved the problem for us.
Ready is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question: Whole Life and PUA Policies confusedxx FIRE and Money 8 01-15-2017 03:38 PM
To "umbrella" or not to "umbrella"... aza455 Other topics 107 05-19-2016 08:59 PM
Almost 65 and pondering medicare supplement/advantage policies Nova Health and Early Retirement 29 11-23-2011 10:59 AM
Personal Umbrella versus Personal Excess Liability policies ? Linney FIRE and Money 25 11-28-2006 07:06 PM
Disability/Umbrella policies Scout Young Dreamers 21 11-04-2006 08:41 AM

» Quick Links

 
All times are GMT -6. The time now is 02:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.