Do we need umbrella insurance?

[Anonymous]

So I'll just ask... who do people get quotes through

[Anonymous]

Anonymous wrote:Hell yes. Protect what you have. It costs next to nothing.

I guess I am just not clear how it protects anything. If someone ends up having a fall on your property and becomes paraplegic, a million dollar policy is not going to cover you sufficiently. Their lawyers find out your net worth, and how much your insurance is, and they come after the lot. So while it would cover some circumstances, it would not cover all.

If your coverage is 2 million and your net worth 1 million, a 3 million judgment would still wipe you out.

[Anonymous]

Anonymous wrote:So I'll just ask... who do people get quotes through

whoever issues your homeowners or auto policy

[Anonymous]

You are crazy to not already have umbrella insurance. The annual premium is less than the cost of a month's worth of Starbucks'.

One accident can and will wipe that $200K out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hell yes. Protect what you have. It costs next to nothing.

I guess I am just not clear how it protects anything. If someone ends up having a fall on your property and becomes paraplegic, a million dollar policy is not going to cover you sufficiently. Their lawyers find out your net worth, and how much your insurance is, and they come after the lot. So while it would cover some circumstances, it would not cover all.

If your coverage is 2 million and your net worth 1 million, a 3 million judgment would still wipe you out.

Many times the plaintiff is willing to settle for what the insurer will pay.

[Anonymous]

Think of it as low cost legal insurance...the insurance company will legally represent you since they don't want to pay the plaintiff if they don't have to...

[Anonymous]

Anonymous wrote:It's way cheaper than you probably think. I pay $100-150 a year. I can't remember the limit but I know it's at least $1M. Totally worth it.

Ours is $158/year for $1M from Geico.

[Anonymous]

I would get umbrella insurance. It's pretty cheap. Yes, a bad accident may still wipe you out. However, the plaintiff may settle for the amount of your policy if it's high enough. I currently have a $1mil policy, but will bump it up to $2 mil once I close on my house. Plus, it's nice knowing that the insurance company will fight for you in a lawsuit (not that they really care about you, but they aren't going to pay such a large amount without a fight).

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's way cheaper than you probably think. I pay $100-150 a year. I can't remember the limit but I know it's at least $1M. Totally worth it.

Ours is $158/year for $1M from Geico.

That rate seem awesome (and low) to me. We have a Geico umbrella, just increased it to $5M, and I think we pay about $1250 (and I thought we paid just under $1000 when our coverage was $1M).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's way cheaper than you probably think. I pay $100-150 a year. I can't remember the limit but I know it's at least $1M. Totally worth it.

Ours is $158/year for $1M from Geico.

That rate seem awesome (and low) to me. We have a Geico umbrella, just increased it to $5M, and I think we pay about $1250 (and I thought we paid just under $1000 when our coverage was $1M).

I pay $130/yr for my $1mil policy, but I don't have many assets yet (<$200,000).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's way cheaper than you probably think. I pay $100-150 a year. I can't remember the limit but I know it's at least $1M. Totally worth it.

Ours is $158/year for $1M from Geico.

That rate seem awesome (and low) to me. We have a Geico umbrella, just increased it to $5M, and I think we pay about $1250 (and I thought we paid just under $1000 when our coverage was $1M).

We have a $5M policy. Less than $500/yr.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hell yes. Protect what you have. It costs next to nothing.

I guess I am just not clear how it protects anything. If someone ends up having a fall on your property and becomes paraplegic, a million dollar policy is not going to cover you sufficiently. Their lawyers find out your net worth, and how much your insurance is, and they come after the lot. So while it would cover some circumstances, it would not cover all.

If your coverage is 2 million and your net worth 1 million, a 3 million judgment would still wipe you out.

Many times the plaintiff is willing to settle for what the insurer will pay.

This! Good insurance is a bird in the hand for most plaintiffs' lawyers. They don't want to spend money trying their clients' cases.

[Anonymous]

We have a $1m policy that runs me $109 through State Farm, it's bundled with all the other insurance we have through them, so I get various discounts.

[Anonymous]

Anonymous wrote:We have a $1m policy that runs me $109 through State Farm, it's bundled with all the other insurance we have through them, so I get various discounts.

Yup, I'm the $1M Geico policy for $158/year poster. We have two cars, two homes, and a flood policy all with GEICO and I have been their customer since I could drive, so I suspect that factors in.

[Anonymous]

You want at least a million umbrella policy that you can get for $300 per year or so. At the same time you may be able to reduce auto liability coverage, since some is now under the newly-purchased umbrella, saving some money. I have 2 million for $400 a year. The incremental premium above for a 1 million policy is not that great.