Hello all,
This thread https://www.early-retirement.org/forums/f28/umbrella-premium-tripled-108578.html got me thinking about the following questions:
- How much is sufficient? What factors affect the calculation of that number?
- When should I consider increasing the limit?
- What does an 'underwriting process' involve and how hard is it to pass?
- What happens if the current insurance company doesn't let me to increase to $3M or $5M?
- Would getting a 2nd umbrella from a different insurance company help in case of a lawsuit? It would probably be difficult to find such a company if I wanted to keep home and cars with my primary insurance company.
My limited understanding says that 401k's, IRA's, and the primary house are protected if there was a lawsuit or does it differ by each state? I honestly don't know
Would they take our cars away or would we be allowed to keep them?
If I am correct about above, an umbrella insurance would be needed to cover any taxable accounts we my have such as CD's/Savings/I-bonds/brokerage accounts and probably other real property that people own.
We've always been loyal customers of Erie Insurance since we moved to NC and bought a house almost 20 years ago.
We added $1M umbrella with Erie perhaps 15 years ago.
Thanks to the discussion on the other thread, it immediately prompted me to email my agent's office to bump up to $2M because our taxable accounts are definitely over $1M, but still quite away from $2M (unless this market keeps gaining like crazy).
Our oldest child will start driver's ed soon and therefore I think it was definitely time to increase our umbrella's limit. However, I wonder whether we should wait until our taxable accounts cross $2m or/and our 2nd child starts driver's ed in 3 years before bumping to $3M or do it much sooner?
In order to qualify for $3m, we would need to pass the underwriting process.
TIA for sharing your thoughts and knowledge.
This thread https://www.early-retirement.org/forums/f28/umbrella-premium-tripled-108578.html got me thinking about the following questions:
- How much is sufficient? What factors affect the calculation of that number?
- When should I consider increasing the limit?
- What does an 'underwriting process' involve and how hard is it to pass?
- What happens if the current insurance company doesn't let me to increase to $3M or $5M?
- Would getting a 2nd umbrella from a different insurance company help in case of a lawsuit? It would probably be difficult to find such a company if I wanted to keep home and cars with my primary insurance company.
My limited understanding says that 401k's, IRA's, and the primary house are protected if there was a lawsuit or does it differ by each state? I honestly don't know
Would they take our cars away or would we be allowed to keep them?
If I am correct about above, an umbrella insurance would be needed to cover any taxable accounts we my have such as CD's/Savings/I-bonds/brokerage accounts and probably other real property that people own.
We've always been loyal customers of Erie Insurance since we moved to NC and bought a house almost 20 years ago.
We added $1M umbrella with Erie perhaps 15 years ago.
Thanks to the discussion on the other thread, it immediately prompted me to email my agent's office to bump up to $2M because our taxable accounts are definitely over $1M, but still quite away from $2M (unless this market keeps gaining like crazy).
Our oldest child will start driver's ed soon and therefore I think it was definitely time to increase our umbrella's limit. However, I wonder whether we should wait until our taxable accounts cross $2m or/and our 2nd child starts driver's ed in 3 years before bumping to $3M or do it much sooner?
In order to qualify for $3m, we would need to pass the underwriting process.
TIA for sharing your thoughts and knowledge.
Last edited: