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01-17-2019, 07:27 PM
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#21
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,373
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Unless you ran into a petty, vengeful billionaire.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-17-2019, 07:44 PM
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#22
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Moderator
Join Date: Jul 2017
Posts: 5,775
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__________________
Use it up, wear it out, make it do or do without.
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01-18-2019, 06:08 AM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,330
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I'm in the COCheesehead school. Big enough that the insurer has enough skin in the game to defend me. I never could understand why people thing insuring their net worth makes sense. If the award is larger down you go.
As an aside, I just learned the hard way that many umbrella policies have stricter underwriting policies that auto policies. Be careful lending your car to people. A couple of fender benders with uncovered drivers and you can lose the policy.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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01-18-2019, 06:13 AM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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My insurance agent, of all people, bumped a pedestrian in a crosswalk with her car. The “victim” went after her umbrella policy and the company awarded the person a low 6 figure settlement. She cannot get another umbrella now because of the claim.
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01-18-2019, 06:50 AM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,304
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WRT the $2M umbrella threshold, my provider will lock in up to $2M over the phone. They offer umbrella insurance up to $10M, but underwriters get involved on any policy greater than $2M. I renew insurance in Jan, so current rates FWIW:
$1M - $167/yr
$2M - $276/yr
$3M - $401/yr
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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01-18-2019, 07:03 AM
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#26
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Dryer sheet aficionado
Join Date: Jan 2019
Posts: 48
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I just went though this: My teenage son was driving my car one night when another kid ran a red light and my son hit him. My son was uninjured, but the other driver had about $200,000 in medical bills. This went to court, I have a $4mm umbrella, so I was not worried. But out of 12 jurors, no one could figure out that my son's testimony that he had a green light, or the friend of the other driver who admitted he also ran the red light was "evidence". We lost for $400,000. Fortunately, insurance covered it all. So I carry a good size policy. Law suits in the US are out of control.
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01-18-2019, 07:15 AM
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#27
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,523
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Quote:
Originally Posted by Midpack
WRT the $2M umbrella threshold, my provider will lock in up to $2M over the phone. They offer umbrella insurance up to $10M, but underwriters get involved on any policy greater than $2M. I renew insurance in Jan, so current rates FWIW:
$1M - $167/yr
$2M - $276/yr
$3M - $401/yr
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Midpack >>> "underwriters get involved on any policy greater than $2M"
. Is this your insurance company's policy or is it underwriters only get involved over 2M with every insurance company?
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01-18-2019, 07:20 AM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,304
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Quote:
Originally Posted by street
Midpack >>> "underwriters get involved on any policy greater than $2M"
. Is this your insurance company's policy or is it underwriters only get involved over 2M with every insurance company?
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I only got quotes from my insurance provider. I don’t know, others here may?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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01-18-2019, 07:52 AM
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#29
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,157
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Here is another angle to look at this.
An older gentleman explained to me why he carried a $2M umbrella policy when he had a net worth well under $1M. He said that he did it out of concern for his passengers. If he was responsible for an accident and his 4 grandchildren were in the car with him he wanted to be sure he had adequate limits to protect them.
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01-18-2019, 08:17 AM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,523
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Thanks Midpack.
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01-18-2019, 08:20 AM
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#31
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gone traveling
Join Date: Dec 2018
Posts: 1,196
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There is quite a number of them in FL. There was a bumper sticker a long time ago that said "Hit me, I need the money". The scammers know how to stage a vehicle accident and the ambulance chaser lawyers not far behind.
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01-18-2019, 08:54 AM
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#32
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Dryer sheet wannabe
Join Date: Nov 2018
Posts: 23
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With those quotes, apparently you don't have any drivers under 25 nor own any rental properties.
Quote:
Originally Posted by Midpack
WRT the $2M umbrella threshold, my provider will lock in up to $2M over the phone. They offer umbrella insurance up to $10M, but underwriters get involved on any policy greater than $2M. I renew insurance in Jan, so current rates FWIW:
$1M - $167/yr
$2M - $276/yr
$3M - $401/yr
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01-18-2019, 09:37 AM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,264
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I guess the statistic we need is how many lawsuits involving ordinary people without deep personal pockets end up with an award much greater than the person's insured amount. My guess is it's a very small percentage, under 10%. And I do mean 'guess'.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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01-19-2019, 10:42 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,633
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Quote:
Originally Posted by Stormy Kromer
Here is another angle to look at this.
An older gentleman explained to me why he carried a $2M umbrella policy when he had a net worth well under $1M. He said that he did it out of concern for his passengers. If he was responsible for an accident and his 4 grandchildren were in the car with him he wanted to be sure he had adequate limits to protect them.
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That probably works for grandkids, but be aware most umbrella policies have a "own household" exclusion, so a spouse/kids would not be covered if the other spouse while driving caused their injures.
They would be covered under combined uninsured/underinsured coverage...one lawyer I read advised cranking that coverage up to $1 million because of the above exclusion.
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01-19-2019, 10:44 AM
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#35
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Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,633
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Quote:
Originally Posted by Chuckanut
I guess the statistic we need is how many lawsuits involving ordinary people without deep personal pockets end up with an award much greater than the person's insured amount. My guess is it's a very small percentage, under 10%. And I do mean 'guess'.
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This gets discussed all the time over on bogleheads.
You don't see 7 figure judgments against an individual defendant...unless they're DUI.
So don't drink (or drug) & drive.
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01-19-2019, 11:08 AM
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#36
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Thinks s/he gets paid by the post
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 1,499
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Has anyone been able to locate the actual historical loss numbers for umbrella risks? In the c*rporate world, when purchasing liability coverage, we had access to loss data showing large liability losses over multi-year periods. Accordingly, we could purchase x$ worth of liability insurance and feel confident it would cover 70% of historical settlements/judgements. IOW, it would help to know that a $1M umbrella limit would cover 80% of historical umbrella losses and a $5M limit would cover 97%.
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
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01-19-2019, 11:34 AM
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#37
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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Quote:
Originally Posted by COcheesehead
The best advice I ever saw regarding the value of an umbrella policy is that you want to make it high enough that your insurance provider cares enough about their potential loss that they send a bunch of good lawyers to defend you.
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Quote:
Originally Posted by pb4uski
That's the way I like to frame it. My umbrella carrier has 2 million reasons to provide me with a vigorous defense.
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I agree with this thinking. Just curious why $2M? That number seems to pop up a lot in this context. I have $1M umbrella plus $0.5M on the auto policy. That's 1.5 million reasons to mobilize the "A team" on my behalf. My gut says that's plenty. But I have no experience in these matters. And hope to keep it that way.
Quote:
Originally Posted by flintnational
Has anyone been able to locate the actual historical loss numbers for umbrella risks? In the c*rporate world, when purchasing liability coverage, we had access to loss data showing large liability losses over multi-year periods. Accordingly, we could purchase x$ worth of liability insurance and feel confident it would cover 70% of historical settlements/judgements. IOW, it would help to know that a $1M umbrella limit would cover 80% of historical umbrella losses and a $5M limit would cover 97%.
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+1 Would love to see those numbers.
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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01-19-2019, 02:50 PM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,095
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Quote:
Originally Posted by Cobra9777
I agree with this thinking. Just curious why $2M? That number seems to pop up a lot in this context. I have $1M umbrella plus $0.5M on the auto policy. That's 1.5 million reasons to mobilize the "A team" on my behalf. My gut says that's plenty. But I have no experience in these matters. And hope to keep it that way.
......
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Because $1M doesn't buy as much health care/doctoring/nursing as it used to 10 years ago.
And the cost deferential between 1M and 2M is so small, can you imagine realizing one day, that the $23 saved each year for the past X years, just got eaten by a 1.1M or higher decision.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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01-19-2019, 03:01 PM
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#39
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,495
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Quote:
Originally Posted by Sunset
Because $1M doesn't buy as much health care/doctoring/nursing as it used to 10 years ago.
And the cost deferential between 1M and 2M is so small, can you imagine realizing one day, that the $23 saved each year for the past X years, just got eaten by a 1.1M or higher decision.
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This. Plus the prior discussion about $2M being the non-underwritten limit.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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01-19-2019, 07:17 PM
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#40
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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Quote:
Originally Posted by Sunset
Because $1M doesn't buy as much health care/doctoring/nursing as it used to 10 years ago.
And the cost deferential between 1M and 2M is so small, can you imagine realizing one day, that the $23 saved each year for the past X years, just got eaten by a 1.1M or higher decision.
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Thanks, although my incremental cost for $2M is about $350/yr. I'm covering a rental house, 3 cars, plus the main house is quite large with a pool, pond, and some other risks. If it was $23, obviously that would be a no-brainer.
Also, you mentioned higher medical costs vs 10 years ago, which is certainly a good reason to carry more umbrella, generally. But I guess I was asking more specifically about : What level of liability coverage would ensure I get the "A Team" of lawyers? Let's say it's a huge, possibly quasi-frivolous claim, like $6M, for an auto accident with some injuries. And I have exposed assets of $1M that I need to protect. The insurance company is potentially on the hook for either $1M or $2M, depending on how much umbrella I buy. Obviously $2M exposure is more motivation than $1M. I get that. But isn't $1M, plus another $0.5M of auto liab, also enough motivation to mobilize the "A Team?"
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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