Insurance deductibles

[teejayevans]

Quote:

Originally Posted by rjpatt If you are saving for ER (which I assume means you have or are planning to have a nice nest egg) I think you need much more than the minimum liability which I believe in LA is only like 10 or 20k. Remember liability is what you would owe someone for an accident that is your fault. For instance if you totaled someone's Mercedes that could be 20k right there before you even start talking about medical, lost wages etc. Could easily reach large six figure numbers. I know insurance is expensive in New Orleans, but I would increase that liability number drastically (may be 500k).

Depends on the state but generally you pensions (incl. 401K) and IRAs
cannot be touched. And if you apply for bankruptcy you can protect
your home.
This may be a good reason to spend down your taxable accounts first.
TJ

[Martha]

Quote:

Originally Posted by teejayevans Depends on the state but generally you pensions (incl. 401K) and IRAs cannot be touched. And if you apply for bankruptcy you can protect your home. This may be a good reason to spend down your taxable accounts first. TJ

Even if you file bankruptcy, the extent your home is protected is mostly a function of state law. If you chose the federal bankruptcy exemptions, there is only a small homestead exemption. So, if you have a lot of equity in a home, generally people chose the state exemptions even when they file bankrutpcy. Some states provide a big homestead exemption (think Florida and Texas) and some very small.

Interesting comment on using taxable accounts first.

As far as the OP's question, we ditched collision insurance on our car, which is probably worth about $10,000. We keep it on the motorhome.

W2R, increase those liability limits!

When thinking about umbrella policies I don't think about the value of our assets, I think about the risk of being sued and typical lawsuit settlements and recovery. Do you have rental property or a teenage son driving your car? Higher umbrella limits for you. The cost of defense does not come out of the umbrella amount.