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Old 06-20-2017, 11:01 AM   #41
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Most reputable Boards provide D&O coverage so you should not have to personally insure for this. Just make sure the Board's coverage limits seem adequate. If they don't, it's probably a Board best avoided.
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Old 06-20-2017, 09:49 PM   #42
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Went to a meeting for HOA board members at the local library to hear from an attorney specializing in HOA issues.

Was shocked to hear how few of the HOAs represented there carried D&O insurance.

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Originally Posted by Scuba View Post
Most reputable Boards provide D&O coverage so you should not have to personally insure for this. Just make sure the Board's coverage limits seem adequate. If they don't, it's probably a Board best avoided.
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Old 06-20-2017, 11:01 PM   #43
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Originally Posted by ncbill View Post
Went to a meeting for HOA board members at the local library to hear from an attorney specializing in HOA issues.



Was shocked to hear how few of the HOAs represented there carried D&O insurance.


Surprising. I'm on my HOA Board but wouldn't be willing to serve without D&O coverage. I suppose smaller HOA's with less sophistication and funding may not feel it's a worthwhile use of cash.
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Old 06-21-2017, 11:57 PM   #44
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Dang. I'm always the black sheep! We looked into this several yrs ago thinking we might need it also but had a hard time seeing benefits of umbrella policy after really researching it. We've ALWAYS been bare minimum on ALL insurances, so was reluctant anyways. DW and I recently had this discussion. DW stated that working for attorneys firm in past yrs, many of the wealthy had very large ins policies for just about everything even though they had enough should the unforeseen happen. I disagreed with this completely. Many of the extremely wealthy are self insured for everything. A week or so ago was listening to Dave Ramsey. He was asked this question on ins policies. He endorses ins policies for those without $ but does NOT endorse anything other than bare bone policies for those that have a sizeable amount $. We don't have great radio reception so my choices are DR, Politics or head bangin music. DR wins out about half the time.
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Old 06-22-2017, 05:52 AM   #45
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Just received my renewal from Chubb.

For a 10MM umbrella policy which covers 4 homes and 5 vehicles (one a collector car) and a small boat I pay $2,248.00. I receive a $300.00 credit for having $500,000.00 underlying coverage on the vehicles. Also have a pilots license but do not own a plane.

If you have a high net worth, I am not of the opinion that you need to have the umbrella limits cover all of your assets. However, the incremental cost of increasing the umbrella is relatively small.

Just my opinion, but if your budget allows and your assets are below 5MM, I would have the umbrella approach that amount. I have a familiarity with jury awards (because of my profession) and if you live in an area with high earning individuals, a serious injury caused by an accident close to home (where most occur) could exceed 2-3MM. Such a recovery is less likely for example if you live in an area with a high concentration of seniors, but anything can happen.

I also have a 19 and 23 year old on my auto policy and the above helps me sleep. As an aside, I also have been light on other aspects of insurance and only have coverage for larger risk exposures. By way of example never had a disability policy, keep a $25,000 deductible on my homeowners policies and only bought term life insurance when I was younger. But, again in my opinion, the cost of an umbrella policy is small compared to the risk. So I respectfully disagree with Dave Ramsey. I see no reason to put my assets at risk (i.e. self-insure) when the cost of insurance is relatively small. I would be willing to bet Dave Ramsey has an umbrella policy.
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Old 06-22-2017, 06:25 AM   #46
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A week or so ago was listening to Dave Ramsey. He was asked this question on ins policies. He endorses ins policies for those without $ but does NOT endorse anything other than bare bone policies for those that have a sizeable amount $.
I'm too risk-averse for that. Certainly I carry high deductibles on Homeowners and Auto (and have dropped Collision and Comp. coverage on old cars) and, like most people who bought health insurance from the Exchange, have a high health insurance deductible. Those losses are capped, though. I know what t would cost to blow through the deductible. I find it hard to believe, though, that if I slam into a car full of people and have $25K per person/$50K per accident liability limits and their new SUV is totalled, they'll meekly accept my policy limits and not go after my other assets. I have an excellent driving record but Stuff Happens.
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Old 06-22-2017, 08:41 AM   #47
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Hyper - I guess it depends on your liability tolerance. Even if I have a few mill net worth, I'd rather pay 1k/yr for 40 years than search for and find an attorney, pay him 70k, and still risk liability if we loose the case.
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Old 06-22-2017, 08:37 PM   #48
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Originally Posted by phil1ben View Post
Just received my renewal from Chubb.

For a 10MM umbrella policy which covers 4 homes and 5 vehicles (one a collector car) and a small boat I pay $2,248.00. I receive a $300.00 credit for having $500,000.00 underlying coverage on the vehicles. Also have a pilots license but do not own a plane.

If you have a high net worth, I am not of the opinion that you need to have the umbrella limits cover all of your assets. However, the incremental cost of increasing the umbrella is relatively small.

Just my opinion, but if your budget allows and your assets are below 5MM, I would have the umbrella approach that amount. I have a familiarity with jury awards (because of my profession) and if you live in an area with high earning individuals, a serious injury caused by an accident close to home (where most occur) could exceed 2-3MM. Such a recovery is less likely for example if you live in an area with a high concentration of seniors, but anything can happen.

I also have a 19 and 23 year old on my auto policy and the above helps me sleep. As an aside, I also have been light on other aspects of insurance and only have coverage for larger risk exposures. By way of example never had a disability policy, keep a $25,000 deductible on my homeowners policies and only bought term life insurance when I was younger. But, again in my opinion, the cost of an umbrella policy is small compared to the risk. So I respectfully disagree with Dave Ramsey. I see no reason to put my assets at risk (i.e. self-insure) when the cost of insurance is relatively small. I would be willing to bet Dave Ramsey has an umbrella policy.


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