When did you get umbrella insurance?

[Anonymous]

Is there a certain NW at which this makes sense? We are at $1.2M including home equity and don't have visible wealth - old/small house, old cars etc.

[Anonymous]

When my oldest teen began driving.

—Very wealthy person

[Anonymous]

We got it earlier this year when we inherited money and nw increased to about 5 million.

[Anonymous]

You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

[Anonymous]

When I started coaching youth sports. I tripped it when my kids started driving.

[Anonymous]

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

It is not good advice.

I would only get it if your non-501k assets are over $1 million.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

It is not good advice.

I would only get it if your non-501k assets are over $1 million.

What about income? I’m early in my career, 300k salary at the moment, with 300k in brokerage/300k retirement/300k in home equity and paid off vehicle (rough numbers).

My car liability insurance is 250/500. Should I get an umbrella policy. If yes, is 1M enough or should I do 2M?

[Anonymous]

I got it early—when I was clearly on an educational trajectory that made me likely to have a high income. That was when my lawsuit risk began IMO. Cheapest insurance on Earth.

[Anonymous]

When you have a house and a car.

Max insurance levels in auto, especially uninsured.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

I think state law dictates whether and how much retirement assets are protected. So you shouldn’t presume that retirement assets can’t be touched if there’s a judgment against you.

[Anonymous]

Anonymous wrote:Is there a certain NW at which this makes sense? We are at $1.2M including home equity and don't have visible wealth - old/small house, old cars etc.

Do you do anything that could lead to $1.2M in liability? Umbrella insurance just makes it so your carrier can offer the plaintiff enough money where they won't come after you. If you only have $200k assets but get a huge judgement against you then your wages and bank accounts will start being garnished. Even if you aren't visibly wealthy, your home address can be a good indication you have wages or rental income deposits to grab.

[Anonymous]

Anonymous wrote:When you have a house and a car.

Max insurance levels in auto, especially uninsured.

Same, umbrella on top of our homeowners only adds an extra $100 a year or so in premiums.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

They can’t come after 401k assets in a lawsuit. It’s protected.