Reply to Do you have umbrella insurance? If so, how much, with what company, and how much does it cost you for coverage?

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Reply to "Do you have umbrella insurance? If so, how much, with what company, and how much does it cost you for coverage?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]What accounts aren’t shielded?  Is it your net worth outside of retirement that is exposed?[/quote]

Just to be clear here, the purpose of umbrella insurance is not to "shield" accounts, and it is a fallacy to secure umbrella insurance simply in the amount of one's net worth. For example, assume you have 2mm in net worth that is subject to judgment enforcement, and 2mm in umbrella coverage. Suppose you cause a car accident with one or more serious injuries, even a fatality. If a jury awards a 5mm judgment, the plaintiff is taking *both* your 2mm in umbrella coverage plus your 2mm in net worth.

The basis to over-insure here is so that, if you are involved in a catastrophic loss, you can settle within limits of the policy, so that the loss is held solely by the insurer and not by you. [/quote]

We found it really difficult to find umbrella insurance to cover more than a $1-$2 million. After that we had to go through specialty insurance and we ended up getting dropped and I can't think of anything that would make us high risk.  [/quote]

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