Dropping Umbrella Coverage

[Sunset]

Quote:

Originally Posted by RetireeRobert On the other hand, in my seventy plus years of living dangerously, I have never been sued. Three kids, a wife, multiple cars, and now a pile of assets, and no lawsuits.

Yep, and I've never died yet either, but both could happen and if either happens, it will be TERRIBLE

[RetireeRobert]

Quote:

Originally Posted by Sunset Yep, and I've never died yet either, but both could happen and if either happens, it will be TERRIBLE

But if you die first, any umbrella policy premiums paid were wasted!

[Sunset]

Quote:

Originally Posted by RetireeRobert But if you die first, any umbrella policy premiums paid were wasted!

Hey, I think I know a way to save on house insurance too

[RetireeRobert]

Quote:

Originally Posted by Sunset Hey, I think I know a way to save on house insurance too

Yes, that too. But do be sure your life insurance is paid and in place!

[RunningBum]

Quote:

Originally Posted by RetireeRobert Yes, that too. But do be sure your life insurance is paid and in place!

Why? I've lived dangerously for nearly 60 years and have never used it!

[MarieIG]

Umbrella - is something I pay for that I hope will never be used.

With less vehicles; and less sons driving; you may be able to get a very good deal on your umbrella. If you use a broker, have her/him give you different options to get the best coverage for the lowest prices.

You hire someone to clean your gutters, his ladder goes into a divot on your property, he takes a bad fall . . .

You clip a kid on a bike with your car, he sustains injuries which require life-time care . . .

Certain income can be garnished if a judgment cannot be satisfied out of assets . . .

[ncbill]

Quote:

Originally Posted by MarieIG Umbrella - is something I pay for that I hope will never be used. With less vehicles; and less sons driving; you may be able to get a very good deal on your umbrella. If you use a broker, have her/him give you different options to get the best coverage for the lowest prices. You hire someone to clean your gutters, his ladder goes into a divot on your property, he takes a bad fall . . . You clip a kid on a bike with your car, he sustains injuries which require life-time care . . . Certain income can be garnished if a judgment cannot be satisfied out of assets . . .

Won't anyone facing wage garnishment file bankruptcy to discharge the remainder of the judgment not satisfied from their non-exempt assets?

[Dash man]

Quote:

Originally Posted by ncbill Won't anyone facing wage garnishment file bankruptcy to discharge the remainder of the judgment not satisfied from their non-exempt assets?

Bankruptcy doesn’t necessarily discharge judgments against you. If you have certain kinds of income, a judge can still garnish that income.

[Aramis]

Quote:

Originally Posted by athena53 Umbrella policies are typically written to exclude volunteer commitments- when I was on the B of D of my professional society the agent told me that any Board activities would not be covered. I agree on keeping the coverage, though. I'm widowed, no teenage drivers, no Rottweilers, no swimming pool but I have assets to protect. Another scenario: I loan my car to someone who carries minimum limits and they injure someone in a wreck. Lawyers are always looking for deeper pockets and I could be accused of having negligently entrusted my car to the person who caused the accident.

Its more likely here that your actions as Director, as opposed to simply participating as a volunteer were the rationale behind your agent's advice. Directors & Officers liability is only ever covered by a D&O policy.

[Aramis]

Quote:

Originally Posted by Ian S I was under the impression that it was cheaper to go with an umbrella policy than try to duplicate the coverage by increasing HO and auto coverage.

This was my thinking, too.

Of course, a specific analysis of the OP's situation would answer the question of whether keeping the UMB coverage was cheaper than jacking up the limits in the other policies.

And the UMB is not policy specific, so it has that advantage over two individual, and possibly unequal underlying policy limits.

[Dash man]

Quote:

Originally Posted by Aramis This was my thinking, too. Of course, a specific analysis of the OP's situation would answer the question of whether keeping the UMB coverage was cheaper than jacking up the limits in the other policies. And the UMB is not policy specific, so it has that advantage over two individual, and possibly unequal underlying policy limits.

We have different underlying coverages. Our primary home, two townhomes our sons live in with their families, and our auto policies are all $1M. A beach house (part time rental) and a Florida condo are both $500k. We could be as low as $300k on all of them. We just changed our umbrella company back to USAA since they’ll now take the risk of the short term rental that they wouldn’t before. Our previous umbrella policy required a $1M underlying coverage.

[ncbill]

Quote:

Originally Posted by Dash man Bankruptcy doesn’t necessarily discharge judgments against you.If you have certain kinds of income, a judge can still garnish that income.

Annuity?

I was think more of typical income sources...e.g wages, pension, etc.

[Sunset]

Quote:

Originally Posted by ncbill Won't anyone facing wage garnishment file bankruptcy to discharge the remainder of the judgment not satisfied from their non-exempt assets?

No idea,

But if a person files bankruptcy to discharge claims, aren't they pretty poor at that point

[ncbill]

Quote:

Originally Posted by Sunset No idea, But if a person files bankruptcy to discharge claims, aren't they pretty poor at that point

Could still have 7+ figures in a 401k...but also want to avoid having their wages garnished going forward.

[Dash man]

Quote:

Originally Posted by ncbill Annuity? I was think more of typical income sources...e.g wages, pension, etc.

Bankruptcy often has the judge structure payments if the person has any ordinary income. ERISA protects retirement accounts, but if you have a paycheck it can be garnished, as can annuities not funded with retirement accounts.

[socca]

Quote:

Originally Posted by RE2Boys I am considering dropping my $1M Umbrella Liability Coverage as I consider my risk factors are substantially reduced recently.

I'm pissed off at GEICO for jacking up the renewal rate for my $2M umbrella by 25%. I've probably been thrown into a risk pool where I don't belong (which is the same problem I have with the [A]CA).

Right now, I'm leaning toward whining on social media (this post) and renewing the policy.

[Dash man]

Quote:

Originally Posted by socca I'm pissed off at GEICO for jacking up the renewal rate for my $2M umbrella by 25%. I've probably been thrown into a risk pool where I don't belong (which is the same problem I have with the [A]CA). Right now, I'm leaning toward whining on social media (this post) and renewing the policy.

Try shopping around.

[athena53]

Quote:

Originally Posted by Dash man Try shopping around.

It's a little messier than that. You really want your auto homeowners and umbrella with the same insurer so coverage is "seamless" (what the underlying policies cover, the umbrella does, too, unless specifically excluded) and if the worst happens you'll have the team of a single insurer on your side, instead of the primary, which doesn't care how high your settlement goes beyond their limits, and the umbrella carrier.

So now you have to shop the whole package.

[MarieIG]

Quote:

Originally Posted by athena53 It's a little messier than that. You really want your auto homeowners and umbrella with the same insurer so coverage is "seamless" (what the underlying policies cover, the umbrella does, too, unless specifically excluded) and if the worst happens you'll have the team of a single insurer on your side, instead of the primary, which doesn't care how high your settlement goes beyond their limits, and the umbrella carrier. So now you have to shop the whole package.

I work with primary and excess carriers. Usually the same carrier; sometimes different. It's not the primary who doesn't care how high it goes; it's the excess who, if there is exposure to their layer, comes down on primary like a ton of bricks. With different carriers, they are willing to spend every penny of primary's policy if it saves them money. It can actually help settle a case.

With the same carrier, there are typically two files set up with the primary doing most of the hands on and excess monitoring. Sometimes excess is sleeping so loudly you can hear the snores coming out of the computer. Once there is potential exposure to their layer and/or the raising of reserves, excess takes over - basically giving instructions to primary, and making them pay for defense costs. It is less adversarial.

[Texas Proud]

I am surprised they did not require the max coverage on the house and car before you got an umbrella...


I am probably going to be getting me one soon... my oldest sister is going to get one when she moves insurance companies next week...