Would appreciate input from those in a similar situation. We currently have investable assets at $4.5M , house is worth about $ 250,000....no debt....so net worth approaching the $5 M mark. We currently have an umbrella policy for $ 4M. The maximum my insurance will cover with an umbrella policy is $ 5M which is the norm for most companies. (Travellers Insurance will offer $10M.....but do not want to go through the hassle of changing insurance companies at this point).
If the markets are kind in the coming years , our net worth could climb well above $5M. What would you do?
1) Go ahead and increase umbrella to $5M.
2) Stay at the $4M coverage as I have read that for each additional $1M in coverage the odds of being sued are less. ( For example....more likely to be sued for $1M versus 2 M, 2M versus 3M, etc.).
Currently umbrella coverage costs a pretty penny as both adult children are still on auto policy.
3) Wait until net worth crosses the $6 or $7M mark and then increase the umbrella coverage to $5M. Should be cheaper anyway as adult children will be on their own auto coverage.
And beyond the $5M mark? I guess you just hire a good attorney and cross your fingers if you are ever sued for an amount beyond your umbrella coverage?
Would appreciate any input....especially those that have assets well beyond $5M. Thank you.
If the markets are kind in the coming years , our net worth could climb well above $5M. What would you do?
1) Go ahead and increase umbrella to $5M.
2) Stay at the $4M coverage as I have read that for each additional $1M in coverage the odds of being sued are less. ( For example....more likely to be sued for $1M versus 2 M, 2M versus 3M, etc.).
Currently umbrella coverage costs a pretty penny as both adult children are still on auto policy.
3) Wait until net worth crosses the $6 or $7M mark and then increase the umbrella coverage to $5M. Should be cheaper anyway as adult children will be on their own auto coverage.
And beyond the $5M mark? I guess you just hire a good attorney and cross your fingers if you are ever sued for an amount beyond your umbrella coverage?
Would appreciate any input....especially those that have assets well beyond $5M. Thank you.