How to calculate net worth for umbrella insurance

[Anonymous]

Do you include or exclude retirement? What about college savings?

Please don’t tell me “it’s cheap” so I should just round up. I’m not interested in being over insured or paying more than I need to.

[Anonymous]

Umbrella insurance is remeelatively CB rap. And it’s a pain to recalculate levels (if over $2m typically). So just go with 3 or 4 million and get coverage. Your wealth should increase yearly anyhow

[Anonymous]

We are mid-late 30s, one child and network $1+. My calculations were if I die my spouse should be able to pay off the mortgage, take a few years off and pay for.mu kids college.thise Numbers came to $1m. I could get more but like you didn't want to over insure.

[Anonymous]

Anonymous wrote:We are mid-late 30s, one child and network $1+. My calculations were if I die my spouse should be able to pay off the mortgage, take a few years off and pay for.mu kids college.thise Numbers came to $1m. I could get more but like you didn't want to over insure.

That's not what umbrella insurance is for. It is if someone goes after you for negligence or something above your car or homeowners limits. If you are dead you won't care about that.

[Anonymous]

I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

[Anonymous]

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

It’s not cheap as far as I’m concerned. $800 a year is still a lot of money to me as while it network is relatively high our income is not.

[Anonymous]

The issue is whether a court verdict could come after your retirement funds. That’s what’s unclear to me.

[Anonymous]

Does the company you’re buying insurance from know? Or maybe it differs based on the state in which you are sued.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

It’s not cheap as far as I’m concerned. $800 a year is still a lot of money to me as while it network is relatively high our income is not.

$800 for how much coverage? Generally you can get $2m for less than $300. It’s actually the only insurance that I know of that gets more expensive per million as you go up. I pay $2088 for $10M

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

It’s not cheap as far as I’m concerned. $800 a year is still a lot of money to me as while it network is relatively high our income is not.

$800 for how much coverage? Generally you can get $2m for less than $300. It’s actually the only insurance that I know of that gets more expensive per million as you go up. I pay $2088 for $10M

Wow! Where did you get that insane rate? You must have no pets and no drivers on your cars. I was quoted much higher for 1 M. We had 2 teen drivers at the time and a dog. We don’t have a huge net worth so 1 M is plenty for us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

It’s not cheap as far as I’m concerned. $800 a year is still a lot of money to me as while it network is relatively high our income is not.

$800 for how much coverage? Generally you can get $2m for less than $300. It’s actually the only insurance that I know of that gets more expensive per million as you go up. I pay $2088 for $10M

Wow! Where did you get that insane rate? You must have no pets and no drivers on your cars. I was quoted much higher for 1 M. We had 2 teen drivers at the time and a dog. We don’t have a huge net worth so 1 M is plenty for us.

^^to clarify, I was referring to $2M for less than $300.

[Anonymous]

Your net worth doesn’t have that much to do with how much umbrella insurance you should take out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think you exclude retirement savings and college savings because a creditor can't reach those things. But I'm guessing. I am a lawyer, though, so it's not an entirely uneducated guess!

This is OP and that’s my guess too but I can’t find any definitive confirmation of it.

I don’t think it’s a hard fast rule. You need to have enough insurance that whoever is suing you is happy to take the max amount without going after you personally.

If you have a 2 million dollar policy and 2 million in liquid assets and two million in retirement assets a 4 million dollar verdict puts you on the hook for 2 million.

That being said verdicts like that are rare (and attorneys who will turn down a 2 million insurance payout to try to chase down money from an individual is also going to be rare). Of course the rareness is why it’s so cheap but I know you don’t want to hear about that.

It’s not cheap as far as I’m concerned. $800 a year is still a lot of money to me as while it network is relatively high our income is not.

$800 for how much coverage? Generally you can get $2m for less than $300. It’s actually the only insurance that I know of that gets more expensive per million as you go up. I pay $2088 for $10M

Actually it’s not $800. It’s $671 for $2m, and no I can’t get it any less expensive. Or $895 for $3m. So no $2m is not available for $300 for me.