Umbrella Insurance

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities

Do you have Umbrella Insurance

Yes
76
41%
Yes
76
41%
No
10
5%
No
10
5%
Thinking about purchasing it
12
7%
 
Total votes: 184

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Toons
Posts: 6188
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Umbrella Insurance

Postby Toons » Mon Jul 12, 2010 9:54 am

Umbrella Insurance :D
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Sriracha
Posts: 474
Joined: Mon May 31, 2010 12:14 pm

Postby Sriracha » Mon Jul 12, 2010 12:11 pm

Yes, b/c it fits so well into the "insure against the biggies that can wipe you out and that you can't [well, I can't, at least] self-insure against" mindset. Plus, it's awfully cheap.

S.
Don't reach for yield.

chaz
Posts: 13563
Joined: Tue Feb 27, 2007 2:44 pm

Postby chaz » Mon Jul 12, 2010 12:49 pm

Better safe than sorry.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

LynnC
Posts: 761
Joined: Thu Mar 01, 2007 7:01 pm
Location: California

Postby LynnC » Mon Jul 12, 2010 12:55 pm

Just a little extra peace of mind. Seems like everyone out there is looking to sue someone about something.

Better safe than sorry.

LynnC

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dm200
Posts: 7305
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Postby dm200 » Mon Jul 12, 2010 1:00 pm

We have a $2 million policy. Peace of Mind and being able to sleep at night are the benefits.

Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?

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femur
Posts: 244
Joined: Fri Apr 11, 2008 2:07 pm

Postby femur » Mon Jul 12, 2010 3:21 pm

After seeing a lot of recent threads about umbrella insurance, I finally called my State Farm Agent to get it done.

I just got 2M$ Umbrella coverage for $231/year. This is addition to my Auto and Renters insurance with State Farm.

Added benefit: I got to reduce my auto liability and saved $100/year on my auto policy.

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CrankyManager
Posts: 243
Joined: Wed May 12, 2010 10:12 am
Location: Nebraska

Postby CrankyManager » Mon Jul 12, 2010 4:38 pm

dm200 wrote:We have a $2 million policy. Peace of Mind and being able to sleep at night are the benefits.

Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


Only anectdotal. A friend of a friend of a friend was a bridesmaid in a wedding. She hung her dress on the head of her hotel room's fire sprinkler, resulting in it going off after she left. Long story short, her homeowners policy did not provide coverage for premises rented to her, and her umbrella paid the nearly five figure (gulp!) claim.

Another story I heard from a representative of my insurance company. A neighbor alleged that the company's insured flipped him the bird as he drove past, so he actually sued, alleging emotional distress and personal injury. Even though the lawsuit was frivolous, the umbrella policy was activated and defended the insured in court.
"Does not Dionysius seem to have made it sufficiently clear that there can be nothing happy for the person over whom some fear always looms?" -- Cicero

Gekko
Posts: 3779
Joined: Fri May 11, 2007 5:00 pm
Location: USA

Postby Gekko » Mon Jul 12, 2010 4:47 pm

i pay $500/year for $4M of coverage. i sometimes think about peeling it back to $2M which would cost about $250/year.

BUT - i'm a relatively young single guy with a significant income and net worth and i am often out in bars and clubs where trouble could happen so i'm thinking i should keep it. i've had nights where my food and bar bill was $250 so why scrimp for an extra $2M of coverage?

any thoughts?

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Quasimodo
Posts: 1357
Joined: Thu May 03, 2007 1:58 pm

Postby Quasimodo » Mon Jul 12, 2010 4:52 pm

dm200 wrote:.
Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


Here's a link to one article with real life claim examples:

http://findarticles.com/p/articles/mi_q ... _n8821921/

This was written in 1998, I believe. It's possible to do a search for other articles with umbrella claim examples, but this is one of the more thoughtful articles I remember reading.

John
Many wealthy people are little more than janitors of their possessions. | | Frank Lloyd Wright, architect (1867-1959)

cdwood
Posts: 123
Joined: Thu May 31, 2007 9:37 pm

Postby cdwood » Mon Jul 12, 2010 5:52 pm

dm200 wrote:We have a $2 million policy. Peace of Mind and being able to sleep at night are the benefits.

Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


My father had several rent houses. One evening a man forced entry into one of the houses through a side door and raped the wife of the couple who lived there. A year or so after the incident, my father had negligence charges filed against him by the victim's husband because the side door to the house did not have a deadbolt lock on it. (It had a regular lock, but not an additional deadbolt lock.) Dad turned to the umbrella insurer and they settled with the plaintiff.

The plaintiff had originally asked for a very large sum of money. When the insurer's attorneys presented the plaintiff with the defense they intended to mount against him, he decided to settle for a much smaller amount on the "half a loaf" principle (a tenth of a loaf principle?) Perhaps the tenth was what the plaintiff hoped for all along, but my father would have been in deep doo without the umbrella policy.

mikep
Posts: 3217
Joined: Wed Apr 22, 2009 9:27 pm

Postby mikep » Mon Jul 12, 2010 6:07 pm

I added $2M umbrella for $187 from MetLife. I was able to reduce my car insurance about $50 per 6 months to match the limits required by the umbrella (why pay for overlapping coverage?). Net cost per $1M per year = $43.50

I think it's the best insurance $7.25/month can buy.

littlebird
Posts: 488
Joined: Sat Apr 10, 2010 6:05 pm
Location: Valley of the Sun, AZ

Postby littlebird » Mon Jul 12, 2010 6:37 pm

dm200 wrote:.

Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


Bill Clinton

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dm200
Posts: 7305
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Postby dm200 » Mon Jul 12, 2010 6:56 pm

littlebird wrote:
dm200 wrote:.

Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


Bill Clinton


Ah! Yes!

scrabbler1
Posts: 1883
Joined: Fri Nov 20, 2009 2:39 pm

Postby scrabbler1 » Mon Jul 12, 2010 10:11 pm

In another thread, I mentioned I was considering buying Umbrella insurance. However, after seeing its price and realizing that I already am paying for similar insurance through my co-op complex's policy (which covers PL on the massive grounds of my large co-op complex but not inside my apartment), I will not be buying it. I live in a small apartment and don't have a lot of people coming and going.

I will, however, increase the liability limits on my personal auto policy on my next renewal in a few months. I would have had to do that anyway if I had bought umbrella because I needed to step up to the limits of attachment to be eligible for umbrella. I figure that is where my exposure is the greatest.

joyce.alvarez
Posts: 19
Joined: Wed Apr 28, 2010 12:19 am

Postby joyce.alvarez » Thu Jul 22, 2010 1:27 am

banned spammer

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semperlux
Posts: 367
Joined: Tue Jan 22, 2008 6:46 pm
Location: Ca

Postby semperlux » Thu Jul 22, 2010 2:24 am

bought mine after my net worth exceeded the regular insurance coverage amounts and when I started working in a litigious field.

DriftingDudeSC
Posts: 426
Joined: Sun Jul 13, 2008 4:08 am

Postby DriftingDudeSC » Thu Jul 22, 2010 3:30 am

I bought my umbrella policy last Tuesday. I also have my home & car insurance with the same company.

magicmom
Posts: 521
Joined: Sat Dec 15, 2007 5:04 pm
Location: Neptune Beach, Fl
Contact:

Postby magicmom » Thu Jul 22, 2010 5:38 am

Why would you need to insure your umbrella?

(just had to say it) :lol:

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DaleMaley
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Location: Fairbury, Illinois
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Postby DaleMaley » Thu Jul 22, 2010 6:39 am

Quasimodo wrote:
dm200 wrote:.
Does anyone have any experience when having an umbrella policy was very worthwhile, either by paying on a judgment, by defending a lawsuit or preventing a lawsuit?


Here's a link to one article with real life claim examples:

http://findarticles.com/p/articles/mi_q ... _n8821921/

This was written in 1998, I believe. It's possible to do a search for other articles with umbrella claim examples, but this is one of the more thoughtful articles I remember reading.

John


Thanks for posting the link, I had not seen any actual usages of umbrella policies before reading this 1998 article.
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. – Warren Buffett


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