Reply to How to calculate net worth for umbrella insurance

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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![/quote]

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

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. [/quote]

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.[/quote]

$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[/quote]

It became less expensive incrementally as we increased, with the first million being the most expensive. We ended up with $5m. Weird how much people's costs vary. [/quote]

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