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Reply to "How to calculate net worth for umbrella insurance"
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[quote=Anonymous]I would relate it to the size of judgements rather than your net worth. Once you have assets over a million or so I would just get 2 million of coverage, which would cover 98 percent of all judgements. There is no relationship between the size of a judgement and your net worth. If you have coverage of 1 million and an NW of 1 million you would still be wiped out by a 2 million judgment. If you are the subject of a 2 million judgement then a 2 million policy would protect you whether your net worth is 2 million or 10 million.[/quote]
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