Reply to How to calculate net worth for umbrella insurance

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[quote=Anonymous]I did a deep dive on this last month after seeing a neighbor lose a ton of money due to a slip-and-fall on his property. The assets that you should include are your home equity (home value minus remaining mortgage), savings, investments, and other large personal property. ERISA prevents lawsuits from claiming a 401(k), so you don't need to include that. Some states offer limited protection for other types of retirement accounts, but it really varies. And some states shield some of your home equity, but that also will depend. I could not find any good information about whether college savings accounts could be seized, so I included that in an abundance of caution.

When I calculated it, our net assets were just over $2 million. I debated between getting $2 million or $3 million (my insurer only offers in million-dollar increments), but it was only about $100 more so I went with $3 million. Hopefully I'll never need it, but it's totally worth the piece of mind, especially because DH is quite honest in his Yelp reviews, and umbrella insurance protects against personal defamation claims. [/quote]

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