Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

They can’t come after 401k assets in a lawsuit. It’s protected.

Anonymous wrote:When you have a house and a car.

Max insurance levels in auto, especially uninsured.

Same, umbrella on top of our homeowners only adds an extra $100 a year or so in premiums.

Anonymous wrote:Is there a certain NW at which this makes sense? We are at $1.2M including home equity and don't have visible wealth - old/small house, old cars etc.

Do you do anything that could lead to $1.2M in liability? Umbrella insurance just makes it so your carrier can offer the plaintiff enough money where they won't come after you. If you only have $200k assets but get a huge judgement against you then your wages and bank accounts will start being garnished. Even if you aren't visibly wealthy, your home address can be a good indication you have wages or rental income deposits to grab.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

I think state law dictates whether and how much retirement assets are protected. So you shouldn’t presume that retirement assets can’t be touched if there’s a judgment against you.

When you have a house and a car.

Max insurance levels in auto, especially uninsured.

I got it early—when I was clearly on an educational trajectory that made me likely to have a high income. That was when my lawsuit risk began IMO. Cheapest insurance on Earth.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

It is not good advice.

I would only get it if your non-501k assets are over $1 million.

What about income? I’m early in my career, 300k salary at the moment, with 300k in brokerage/300k retirement/300k in home equity and paid off vehicle (rough numbers).

My car liability insurance is 250/500. Should I get an umbrella policy. If yes, is 1M enough or should I do 2M?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

It is not good advice.

I would only get it if your non-501k assets are over $1 million.

Anonymous wrote:

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

even if most in 401k?

Anonymous wrote:You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

+1
This is good advice.

When I started coaching youth sports. I tripped it when my kids started driving.

You should get it when your net worth exceeds what is covered by existing/max possible insurance policies. If you get into a car accident where the costs exceed your insurance policy, they will come after other assets you have if you have them.

We got it earlier this year when we inherited money and nw increased to about 5 million.

When my oldest teen began driving.

—Very wealthy person

Is there a certain NW at which this makes sense? We are at $1.2M including home equity and don't have visible wealth - old/small house, old cars etc.