Does anyone have access to umbrella/excess liability claims distribution data? A data distribution would tell what percent of claims you would be protected against at a given policy limit. As an example, the data may show 98% of claims are below $1M and 99% are below $2M. (In reality, I suspect the difference between $1M and $2M is less than 1% and both cover way over 99% of claims. But, just a guess.)
With one exception*(that I can think of), asset levels do not impact the above. Whether you have $1M or $2M in assets, both have the same risk of being sunk by a >$3M settlement or judgement. In other words, your risk of a large event does not change with a change in net worth. (see the exception below)
*That exception, yes you are more of a target as your wealth increases. Like bank robbers, plaintiffs tend to go where the money is.
They have it in my umbrella.
My thinking too! Here in Texas my fallback plan to my umbrella policy and a ridiculous lawsuit is best expressed with this flag. Speaks for itself.
Wow, all this discussion about UM got me to take out my policies and read them. What a fine way to spend a morning.
It is hard to be ready for every risk. However, one thing I've started doing is paying a lot of attention to turns and starts at controlled intersections, i.e. ones with traffic signals. I treat left and right turns on green arrows as potentially dangerous now, and check for cross traffic before proceeding. Same with starting at a fresh green light. Too many people not paying attention these days that may blow the light..
