Umbrella Insurance Worry

[COcheesehead]

I just found this out today regarding liability.

When you sell your house and are given time to move out, your contents are covered by the insurance on the new house, the dwelling is covered by the new owner, but you are still on the hook for liability on the property. My insurance agent is issuing us a $25 renters policy to cover the 5 days. With movers and stuff on the property you never know what could happen.

 

[Sunset]

In most (all?) states you can look up owners of any registered business entity. Not sure how an LLC helps privacy.

Form your LLC in Nevada via an agent and pay a small yearly fee to have it registered to a Nevada agent. Real owner name never shows up.

 

[livingalmostlarge]

I got more umbrella and auto with teen driver. Let's me sleep at night no matter what others think.

 

[JBTX]

I'm not recommending anything. I just know that a large property next to the non-profit I volunteer with was put in an LLC. The guy actually came by to introduce himself as a neighbor. It was nice to get a name and a face because we all thought it was a developer. Nah, he said it was for his home, but he values privacy. Although I suppose a P.I. could come by and ask the neighbors who lives there since we now know.

Putting a non residential property in an LLC may make sense. The liability is limited to the extent of the value of the property but does not extend to other personal assets.

Putting a primary home in LLC likely wouldn’t as most states offer some homestead liability protections.

I am not sure of the capital gains / step up impact of an LLC.

IANAL

 

[ncbill]

I believe that depends on state law. Pennsylvania protects all funds in retirement accounts except inherited accounts.

What I stated applies under federal bankruptcy.

State law often offers broader protections w/o having to file bankruptcy.

 

[olyveoil]

Tax records are not public. Auto registration is not public. You can have privacy settings on social media.

um. yes. they are public.

 

[COcheesehead]

um. yes. they are public.

Income tax? No they are not. Auto registration nope. Social media, private if you want to.

 

[Stormy Kromer]

I just found this out today regarding liability.

When you sell your house and are given time to move out, your contents are covered by the insurance on the new house, the dwelling is covered by the new owner, but you are still on the hook for liability on the property. My insurance agent is issuing us a $25 renters policy to cover the 5 days. With movers and stuff on the property you never know what could happen.

You have a good agent, and you were smart to look into it in the first place.

 

[Blanche]

I have umbrella policy and a young adult driver.

Can you file bankruptcy to discharge a monstrous judgement resulting from a car accident or premises liability (someone falling in your home / yard) etc?

 

[olyveoil]

Income tax? No they are not. Auto registration nope. Social media, private if you want to.

OK. Property taxes (Autos, boats, real estate, etc) are all public record. Obviously only relevant in states where property taxes are levied on such things.
Also public info is who purchased what home / lot -- date purchased and amount paid.

 

[Aggie1999]

OK. Property taxes (Autos, boats, real estate, etc) are all public record. Obviously only relevant in states where property taxes are levied on such things.
Also public info is who purchased what home / lot -- date purchased and amount paid.

On the real estate purchase price, whether public or not varies by state.

 

[COcheesehead]

On the real estate purchase price, whether public or not varies by state.

Also, if your home was never on the MLS, in other words bought direct or from a builder, the purchase price is not public.

 

[Tuirc]

Also, if your home was never on the MLS, in other words bought direct or from a builder, the purchase price is not public.

This is not accurate. Seeing your comment, I went and looked at my last house which I bought directly from the builder on homes [.] com. Sure enough, all my info is listed for the purchase of the property. Perhaps there is some other condition where some sales do not have the information, but it isn't just purchasing direct without being on MLS.

 

[COcheesehead]

This is not accurate. Seeing your comment, I went and looked at my last house which I bought directly from the builder on homes [.] com. Sure enough, all my info is listed for the purchase of the property. Perhaps there is some other condition where some sales do not have the information, but it isn't just purchasing direct without being on MLS.

Completely opposite for us. Our house, purchased directly from the builder has no online value. The only thing that shows is the value of the lot which was on the MLS.
Maybe your builder had the house in the MLS without you knowing it.

 

[Tuirc]

Completely opposite for us. Our house, purchased directly from the builder has no online value. The only thing that shows is the value of the lot which was on the MLS.
Maybe your builder had the house in the MLS without you knowing it.

I guess it's possible, but I had it built to my spec. It didn't exist in any form before I signed the contract for the lot and house. So, I'm not sure why they would have done it. There were no glitches or uncertainty in the transaction that would have made them consider a "plan b".

 

[COcheesehead]

I guess it's possible, but I had it built to my spec. It didn't exist in any form before I signed the contract for the lot and house. So, I'm not sure why they would have done it. There were no glitches or uncertainty in the transaction that would have made them consider a "plan b".

Maybe there is another source of your house value.
Our last two houses purchased never were on the MLS and other than the lot price, never hit any public website, We are about to purchase a third the same way.

 

[Just_Steve]

Also, if your home was never on the MLS, in other words bought direct or from a builder, the purchase price is not public.

Your purchase price may not be available but if your county is like mine the county tax roles are public and shows market value at the last assessment and from that you can extrapolate a good ballpark for home value.

 

[COcheesehead]

Your purchase price may not be available but if your county is like mine the county tax roles are public and shows market value at the last assessment and from that you can extrapolate a good ballpark for home value.

Back to the point though of a predatory lawyer seeing how much you have in assets, home value only tells a small part of the tale. Equity is left out of the equation.
All this discussion is moot though if you are taken to court. You still have court ordered disclosure of assets.

 

[Al18]

You might want to give your umbrella policy a second look. I’ve seen a $2M policy good for 2 incidents at $2M each.

 

[COcheesehead]

You might want to give your umbrella policy a second look. I’ve seen a $2M policy good for 2 incidents at $2M each.

Made me look. My policy states it covers the first occurrence. Which based on the experience of a friend who had a claim and could not get a second policy, I guess I am out of luck if I have a second claim.

 

[olyveoil]

Also, if your home was never on the MLS, in other words bought direct or from a builder, the purchase price is not public.

Incorrect.
Go to any county website GIS ..can search by address or just lot by lot and details of non-listed sales will be there. Can see plenty of parents selling to children for $5 or individuals selling to LLC's for $5.

 

[COcheesehead]

Incorrect.
Go to any county website GIS ..can search by address or just lot by lot and details of non-listed sales will be there. Can see plenty of parents selling to children for $5 or individuals selling to LLC's for $5.

Not in my county. Only the value of the lot we built on is public. I stated this in the thread now several times.

 

[engineernerd]

Incorrect.
Go to any county website GIS ..can search by address or just lot by lot and details of non-listed sales will be there. Can see plenty of parents selling to children for $5

...or (in my state, anyway) for "Love and affection." We were charmed to see that in the title history of our current home, until we found out that the parents had included only their two sons, excluding both of their daughters!

 

[Kings over Queens]

You might want to give your umbrella policy a second look. I’ve seen a $2M policy good for 2 incidents at $2M each.

Which carrier?

My experience is that personal excess liability (umbrella) policies provide policy limits for each occurrence. I've seen claims made professional liability policy where the limit of coverage erodes for claims paid during the policy year, as well as defense expense eroding the limit, but not with personal umbrella.

A carrier who does limit coverage for 2 incidents would be one to avoid, which is why I ask if you could name that carrier.

 

[engineernerd]

I have umbrella policy and a young adult driver.

Can you file bankruptcy to discharge a monstrous judgement resulting from a car accident or premises liability (someone falling in your home / yard) etc?

Sure, but you lose all your non-exempt assets in the process. And your credit will be trashed.