Do you carry Umbrella Insurance?

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bayview
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Re: Do you carry Umbrella Insurance?

Post by bayview » Mon Jun 10, 2019 4:04 am

$2M, and it's overkill now that we have unloaded our rental property, but it's cheap. The increased premium might be the equivalent of a few nights' out for dinner, and falls in the "not worth worrying about" category.
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southerndoc
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Re: Do you carry Umbrella Insurance?

Post by southerndoc » Mon Jun 10, 2019 8:36 am

Social media insurance FTW. You think I'm joking, but it actually exists.

deltaneutral83
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Re: Do you carry Umbrella Insurance?

Post by deltaneutral83 » Mon Jun 10, 2019 9:33 am

A million dollar umbrella does wonders. I don't know if there is a better use for $150-$300 on an annual basis.

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Re: Do you carry Umbrella Insurance?

Post by fposte » Mon Jun 10, 2019 9:52 am

deltaneutral83 wrote:
Mon Jun 10, 2019 9:33 am
A million dollar umbrella does wonders. I don't know if there is a better use for $150-$300 on an annual basis.
Can you be more specific about those wonders for you? Like the OP, I'm on the fence about getting it, and I can't decide whether it's something I really should have or if it's more like earthquake insurance--something I'd definitely want in the event of a catastrophic earthquake, but it's very cheaply available where I live because it's not earthquake country.

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Re: Do you carry Umbrella Insurance?

Post by deltaneutral83 » Mon Jun 10, 2019 9:59 am

fposte wrote:
Mon Jun 10, 2019 9:52 am
deltaneutral83 wrote:
Mon Jun 10, 2019 9:33 am
A million dollar umbrella does wonders. I don't know if there is a better use for $150-$300 on an annual basis.
Can you be more specific about those wonders for you? Like the OP, I'm on the fence about getting it, and I can't decide whether it's something I really should have or if it's more like earthquake insurance--something I'd definitely want in the event of a catastrophic earthquake, but it's very cheaply available where I live because it's not earthquake country.
Do you or anyone else in your household drive an automobile (this is the biggie, you can go ahead and STOP here if true...)? Do you or will you plan on having teenagers that will drive. Do you keep alcohol not locked up in the residence? Do you own the residence? Do you own a dog/pool? There are about a million other things as well that are more specific, but those are the big ones that come to mind. I for one, as a human being, am very aware that I am capable of losing concentration for 0.25 second(s) that could cause an auto accident. I believe 85% of umbrella cases are auto related. Posters in this very thread have stated their own auto situations, they happen every day. If a $200 dollar umbrella annual premium causes one to think and ponder for more than 5 seconds, you need one IMO.

We're taught to evaluate risk at an early age but for whatever reason it seems to me the mind can't fully grasp the presence of one single solitary negative event wiping us out unless we simplify it down to Russian roulette. And some people would still do that if the price was right.

fposte
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Re: Do you carry Umbrella Insurance?

Post by fposte » Mon Jun 10, 2019 10:25 am

deltaneutral83 wrote:
Mon Jun 10, 2019 9:59 am
fposte wrote:
Mon Jun 10, 2019 9:52 am
deltaneutral83 wrote:
Mon Jun 10, 2019 9:33 am
A million dollar umbrella does wonders. I don't know if there is a better use for $150-$300 on an annual basis.
Can you be more specific about those wonders for you? Like the OP, I'm on the fence about getting it, and I can't decide whether it's something I really should have or if it's more like earthquake insurance--something I'd definitely want in the event of a catastrophic earthquake, but it's very cheaply available where I live because it's not earthquake country.
We're taught to evaluate risk at an early age but for whatever reason it seems to me the mind can't fully grasp the presence of one single solitary negative event wiping us out unless we simplify it down to Russian roulette. And some people would still do that if the price was right.
But that's the same argument for earthquake insurance. That's my problem. The fact that something could happen isn't enough to justify insuring against it. An earthquake could wipe me out completely, and I'm in a region where one that could have done that has happened, albeit 200 years ago. But I doubt even geologists here have earthquake insurance. For that matter, I don't have flood insurance (I'm in a "minimal flood risk" area per FEMA) or water backup insurance--is there a higher chance of needing those than umbrella insurance?

I'm generally a get-the-vaccine, all-about-the-prevention person, so I'm not inherently skeptical on insurance. I'd just like to hear more about times when something did happen and the insurance was needed or statistics about its coverage use than the possibilities.

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Re: Do you carry Umbrella Insurance?

Post by deltaneutral83 » Mon Jun 10, 2019 10:42 am

fposte wrote:
Mon Jun 10, 2019 10:25 am

But that's the same argument for earthquake insurance. That's my problem. The fact that something could happen isn't enough to justify insuring against it. An earthquake could wipe me out completely, and I'm in a region where one that could have done that has happened, albeit 200 years ago. But I doubt even geologists here have earthquake insurance. For that matter, I don't have flood insurance (I'm in a "minimal flood risk" area per FEMA) or water backup insurance--is there a higher chance of needing those than umbrella insurance?

I'm generally a get-the-vaccine, all-about-the-prevention person, so I'm not inherently skeptical on insurance. I'd just like to hear more about times when something did happen and the insurance was needed or statistics about its coverage use than the possibilities.
I suspect you've made up your mind, but an earthquake destroying your home is not nearly the event that a liability claim could be if you are at fault and injured or killed someone in an automobile. An earthquake can destroy your home and it's contents, that's capped. Are you 100% certain that you and any members of your household will not injure your passengers or the passengers in another vehicle from now on? I'm not even 5% sure over the course of 70 years and this is a scenario I need to be 100% or carry an umbrella policy. In fact, I'm 100% certain of nothing (well death and taxes). The analysis you give seems detailed in hypothetical but is still again ignoring the basis that the event in question only needs to happen once to cause irreparable damage. For sentiments like yours, it's more of a game to conquer when it comes to insurance and that's probably the case with a lot of things we insure, but not this, to me.

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Re: Do you carry Umbrella Insurance?

Post by Bobby206 » Mon Jun 10, 2019 10:44 am

willthrill81 wrote:
Sun Jun 09, 2019 9:55 pm
Bobby206 wrote:
Sun Jun 09, 2019 7:12 pm
Trader Joe wrote:
Sun Jun 09, 2019 6:44 pm
masonstone wrote:
Sat Jun 08, 2019 7:03 am
I'm debating on the limit I should carry for Umbrella Insurance. What percentage of your net worth do you carry as umbrella insurance?
No I do not carry umbrella insurance. There is no need.
No need until a freak accident happens and you get sued for a couple mil. It is so cheap I can't imagine not having it. Good luck.
Getting sued is nothing. It's a judgment that you have to be concerned about. But still, in what non-criminal activity that doesn't involve malpractice is there beyond a one in a million chance of you getting a two million dollar judgment against you?
I think most hypotheticals would be unlikely situations but that's why it's so cheap. For example, I suffered from heat exhaustion the other day and didn't fully realize it until I woke up on the floor. I literally passed out. What if that had happened while I was driving? I can easily think of a multi-million dollar judgement. I am a very healthy person. If I was older and/or not healthy this kind of hypo becomes less unlikely. I sleep better with insurance but to each their own.

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Re: Do you carry Umbrella Insurance?

Post by kevinpet » Mon Jun 10, 2019 10:46 am

I'll be the contrary voice here. I currently have GEICO umbrella and I'm considering canceling. Why? Because they can't give me a straight answer as to whether a liability would be covered.

Background: Got sued due to a mistaken name, not involved in any sort of accident, not involved with any cars or people. GEICO auto insurance says they will defend this suit, but if found liable they won't pay, because it wasn't a car we had coverage on. I've called GEICO Umbrella multiple times now and everyone seems confused by whether there is a separate claim for umbrella vs auto. Eventually got the (auto) claims adjuster to confirm it would be covered, but it was frustrating.

[post has been edited]
Last edited by kevinpet on Mon Jun 10, 2019 8:19 pm, edited 1 time in total.

Pete3
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Re: Do you carry Umbrella Insurance?

Post by Pete3 » Mon Jun 10, 2019 10:52 am

masonstone wrote:
Sat Jun 08, 2019 7:03 am
I'm debating on the limit I should carry for Umbrella Insurance. What percentage of your net worth do you carry as umbrella insurance?
Several people have already explicitly stated this but do you understand why your net worth should have nothing to do with how much umbrella insurance you carry?

Many people think of umbrella insurance in terms of coverage limits for insuring your house but umbrella insurance is completely different.

For the most part, your net worth should not be considered to determine the amount of umbrella insurance you carry.

As an example, if you have a 1M net worth and decide to get 1M in umbrella coverage and get hit by 2M verdict then you are wiped out. Your NW has no bearing on how large a verdict could be awarded against you. How likely it is that you are sued (and for what amount) should be what drives your decision on coverage.

As some people have already said, you want to pick a coverage level that is high enough that the insurance company can settle most claims at or below the policy limit or is motivated to give you the best legal council in case it goes to trial.

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Re: Do you carry Umbrella Insurance?

Post by HomeStretch » Mon Jun 10, 2019 10:59 am

kevinpet wrote:
Mon Jun 10, 2019 10:46 am
I'll be the contrary voice here. I currently have GEICO umbrella and I'm considering canceling. Why? Because they can't give me a straight answer as to whether a current lawsuit will be covered.

Background: Someone with the same name as my wife's name from 15 years ago got in an accident. First we hear of it is a demand that looks like a debt for $20k. We report it to GEICO but generally don't stress since it isn't her name. Eventually, they file suit and amend it to my wife's name. GEICO auto insurance says they will defend this suit, but if found liable they won't pay, because it wasn't a car we had coverage on. I've called GEICO Umbrella multiple times now and no one can tell me if it would be covered, or refer me to the right person who can tell me if it would be covered.

I bought umbrella, not just excess liability. The whole point of umbrella is to cover everything except specific exclusions. If they can't handle that, what's the point of carrying it?
Deleted as off topic. Sorry OP!

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Re: Do you carry Umbrella Insurance?

Post by Sconie » Mon Jun 10, 2019 11:00 am

$1MM, equal to about 25% of our net worth.

My sense is that you want some level of coverage----just "in case"----and a sufficient level of coverage for the insurer to mount a good defense in your behalf. Beyond that, much higher levels of coverage is just "over kill" IMHO. Umbrella insurance is WAY, WAY over-hyped.
I know that you think you understand what you thought I said, but I'm not sure you realize that what I said is necessarily what I meant......

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Re: Do you carry Umbrella Insurance?

Post by fposte » Mon Jun 10, 2019 11:06 am

deltaneutral83 wrote:
Mon Jun 10, 2019 10:42 am

I suspect you've made up your mind,
FWIW, I really haven't, and if anything I'm inclined towards it. It's just I'd like to hear more specific explanations and support for its benefits. So far I'm not sure if anybody here has even reported using it and whether it worked as desired, and it's been pointed out that a few benefits people were claiming for it people already have or, in the case of kevinpet just above me, might not exist when needed.

So I'm mulling.

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Re: Do you carry Umbrella Insurance?

Post by MikeG62 » Mon Jun 10, 2019 12:35 pm

I’ve posted this before, but will repeat it here.

Aunt of my brother-in-law (retired college professor, married with one grown adult son) was killed in an automobile accident about 7-8 years ago. The family sued the driver of the SUV who hit them. Case was settled for $5M ($4M to the now widowed husband for pain and suffering (he was pretty badly injured in the accident too, but has since recovered) and loss of spouse and $1M to the child for loss of mom).

I was told the driver of the vehicle was not the owner of the vehicle (but was the boyfriend or fiance of the owner or daughter of the vehicle owner). I was told the owner of the vehicle was very wealthy and that the driver was not at all wealthy. I assume the $5M may have come from umbrella, but it is just an assumption. I really don't know. The case was settled during the trial (before a jury verdict was reached).

As i said, woman killed was a "retired" professor. Her husband was also a "retired" professor. There were no small children involved. No one was relying on the income stream of the woman who died to make ends meet. Yet, the settlement was $5M.

Imagine what the settlement might be if you killed someone in a car accident who was a young professional in a high (or very high) wage earning position, with possibly a stay at home wife and several young children relying on the deceased's earnings. It is not hard to imagine quite a large settlement in a situation like that.

The takeaway for me has been to get the largest umbrella one can reasonably afford to purchase.

Counterbalancing this are the comments from mptfan who is a litigation attorney in this area whose first hand experience suggests an umbrella is not necessary.

So do what you think is best. I’m ok paying the $1,000 a year for my $5 million policy.
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Re: Do you carry Umbrella Insurance?

Post by FootballFan5548 » Mon Jun 10, 2019 3:35 pm

I work in the Commercial Umbrella Insurance Industry. The verdicts and settlements I see on a daily basis for my insured's and other prospective insured's would make your head spin.
The plaintiff's bar is as strong and empowered as ever on liability cases and for corporations that we insure we routinely see multi-millions, up to tens of millions of dollars of claim settlements/verdicts.

We had one a few months ago where a woman in her apartment building fell down the stairs and broke her hip and femur. The stair crumbled (she was a hefty woman), and she sued her apartment complex. She was barely above the poverty line, didn't make a ton of money.

The jury awarded her $14M. For a broken leg!

As mentioned above, auto liability awards are also as bad as ever which is the main reason auto liability insurance prices are rising at such a rapid rate.

I don't know much about personal umbrellas or how much success you'd have suing an individual instead of a corporation, but an umbrella seems to make good sense.

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Re: Do you carry Umbrella Insurance?

Post by mptfan » Mon Jun 10, 2019 4:00 pm

FootballFan5548 wrote:
Mon Jun 10, 2019 3:35 pm
I don't know much about personal umbrellas...
That seems to sum it up. The OP was asking about personal umbrellas.

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Re: Do you carry Umbrella Insurance?

Post by dknightd » Mon Jun 10, 2019 6:40 pm

Why would I insure an Umbrella? They are cheap and easy to replace. At least the ones I use.

Sorry, I could not resist . . .

We do not currently have an Umbrella liability insurance policy.
But is it something to look at on my to do list.
Along with increasing liability insurance on house and cars. We have not looked at those numbers in years, I suspect they all need to be higher given the increased cost of things. I suspect the cost to us will not be huge to increase coverage. The chance of needing it are small. But I'd like to know that any unforeseen liability would be covered.

I'm was thinking around $1m. But that might not be enough. I guess we'll decide after we meet with insurance agent.

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Re: Do you carry Umbrella Insurance?

Post by willthrill81 » Mon Jun 10, 2019 7:03 pm

mptfan wrote:
Mon Jun 10, 2019 4:00 pm
FootballFan5548 wrote:
Mon Jun 10, 2019 3:35 pm
I don't know much about personal umbrellas...
That seems to sum it up. The OP was asking about personal umbrellas.
mptfan, just to be clear, given your professional expertise and experience, you would not recommend that individuals purchase umbrella liability on top of homeowner's insurance and auto liability?
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Do you carry Umbrella Insurance?

Post by mptfan » Mon Jun 10, 2019 10:11 pm

willthrill81 wrote:
Mon Jun 10, 2019 7:03 pm
mptfan, just to be clear, given your professional expertise and experience, you would not recommend that individuals purchase umbrella liability on top of homeowner's insurance and auto liability?
I do not recommend one way or the other. I get the impression that the insurance industry uses fear mongering to push personal umbrella insurance for the obvious reason that they are highly profitable policies that very rarely have to pay out and I am simply providing information based on my professional experience that may provide a more balanced view of the pros and cons that goes beyond simply playing on people's fears of the potential of a large judgment or future wage garnishments. Yes, those things do happen, but they are a lot less common than some may think. People often cite the low cost of umbrella insurance..."I can get $1 million of coverage for $200 a year, that's cheap!" Think about that for a moment...insurance companies have to make a profit on top of the actuarial cost of covering the risk, so if they are selling such large amounts of coverage for such small premiums, what does that tell you about the risk of paying out? There are many reasons why the risk of paying out on a personal umbrella policy over and above a large primary policy is very small indeed, and personal umbrella policies are priced accordingly, and those reasons have little to do with commercial umbrella policies. To be fair, if a Boglehead has a large net worth, he or she has a somewhat higher risk of being hit with a judgment in excess of primary insurance limits than the average broke Joe for a number of reasons that are complex and would require more time than I have right now to explain. At the end of the day, each person has to make whatever decision is right for them based on their risk tolerance.

Also, I suspect most people who have umbrella insurance have not actually read their umbrella insurance policy. I mean read the actual policy, not a summary or a sales brochure...the actual policy with all of the exclusions. The amount of things that are excluded from coverage may surprise most people and they may come to realize why it was so cheap. Or they may not, either way they will be more informed as to what exactly they are paying for.
Last edited by mptfan on Tue Jun 11, 2019 8:16 am, edited 7 times in total.

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Re: Do you carry Umbrella Insurance?

Post by willthrill81 » Mon Jun 10, 2019 10:17 pm

mptfan wrote:
Mon Jun 10, 2019 10:11 pm
willthrill81 wrote:
Mon Jun 10, 2019 7:03 pm
mptfan, just to be clear, given your professional expertise and experience, you would not recommend that individuals purchase umbrella liability on top of homeowner's insurance and auto liability?
I do not recommend one way or the other. I get the impression that the insurance industry uses fear mongering to push personal umbrella insurance and I am simply providing information based on my professional experience that may provide a more balanced view of the pros and cons that goes beyond simply playing on people's fears of the potential of a large judgment or future wage garnishments. Yes, those things do happen, but the are a lot less common than some may think. People often cite the low cost of umbrella insurance..."I can get $1 million of coverage for $200 a year, that's cheap!" Think about that for a moment...insurance companies have to make a profit on top of the actuarial cost of covering the risk, so if they are selling such large amounts of coverage for such small premiums, what does that tell you about the risk of paying out? There are many reasons why the risk of paying out on a personal umbrella policy over and above a large primary policy is very small indeed, and personal umbrella policies are priced accordingly, and those reasons have little to do with commercial umbrella policies. To be fair, if a Boglehead has a large net worth, he or she has a somewhat higher risk of being hit with a judgment in excess of primary insurance limits than the average broke Joe for a number of reasons that are complex and would require more time than I have right now to explain. At the end of the day, each person has to make whatever decision is right for them based on their risk tolerance.
Thanks. :sharebeer
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Re: Do you carry Umbrella Insurance?

Post by boglerdude » Mon Jun 10, 2019 10:23 pm

> I suffered from heat exhaustion the other day and didn't fully realize it until I woke up on the floor. I literally passed out. What if that had happened while I was driving?

You didnt know that was possible. No foreseeable negligence. Thats why cases always settle (for w/e the policy limits are) rather than the plaintiff risking $250k in legal fees, and spending years in court

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Re: Do you carry Umbrella Insurance?

Post by MikeG62 » Tue Jun 11, 2019 6:46 am

mptfan wrote:
Mon Jun 10, 2019 10:11 pm
To be fair, if a Boglehead has a large net worth, he or she has a somewhat higher risk of being hit with a judgment in excess of primary insurance limits than the average broke Joe for a number of reasons that are complex and would require more time than I have right now to explain. At the end of the day, each person has to make whatever decision is right for them based on their risk tolerance.
It seems to me that this is a key point in the decision as to whether to get an umbrella or not. Someone whose assets consist entirely of retirement accounts (401k/IRA) and their primary residence residing in a state where those assets would be fully protected from a lawsuit would have less need for an umbrella than someone else with several million in taxable accounts (on top of their retirement accounts and primary residence). Of course the former person would be subject to wage garnishment, but as you have pointed out that risk is quite low indeed.
mptfan wrote:
Mon Jun 10, 2019 10:11 pm
Also, I suspect most people who have umbrella insurance have not actually read their umbrella insurance policy. I mean read the actual policy, not a summary or a sales brochure...the actual policy with all of the exclusions. The amount of things that are excluded from coverage may surprise most people and they may come to realize why it was so cheap. Or they may not, either way they will be more informed as to what exactly they are paying for.
Is it fair to say that if you purchased your umbrella from the same insurer as your auto/homeowners insurer, the risk of the umbrella not kicking in for an event which is covered by the underlying policy would be extremely low?
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Re: Do you carry Umbrella Insurance?

Post by Call_Me_Op » Tue Jun 11, 2019 6:56 am

Trader Joe wrote:
Sun Jun 09, 2019 6:44 pm
masonstone wrote:
Sat Jun 08, 2019 7:03 am
I'm debating on the limit I should carry for Umbrella Insurance. What percentage of your net worth do you carry as umbrella insurance?
No I do not carry umbrella insurance. There is no need.
So you are broke with zero future income?
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Re: Do you carry Umbrella Insurance?

Post by TomatoTomahto » Tue Jun 11, 2019 7:10 am

boglerdude wrote:
Mon Jun 10, 2019 10:23 pm
> I suffered from heat exhaustion the other day and didn't fully realize it until I woke up on the floor. I literally passed out. What if that had happened while I was driving?
You didnt know that was possible. No foreseeable negligence. Thats why cases always settle (for w/e the policy limits are) rather than the plaintiff risking $250k in legal fees, and spending years in court
And now he knows. Should he stop driving?
Okay, I get it; I won't be political or controversial. The Earth is flat.

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Re: Do you carry Umbrella Insurance?

Post by azanon » Tue Jun 11, 2019 7:30 am

mptfan wrote:
Sat Jun 08, 2019 10:29 am
Daryl wrote:
Sat Jun 08, 2019 10:16 am
I'll typically ask my agent from time to time about claims / loss activity that he is aware of. Some of his policy holders have had claims in excess of their primary auto limits.
Having a "claim" in excess of your primary limits and having to actually *pay* more than your primary limits are not the same thing. In my more than 20 years of litigation experience, and handling literally hundreds of liability lawsuits, I can only think of *one* case where the insured had to come out of pocket to settle a claim above the policy limits. It is a very rare occurrence.
I really appreciate all of the several posts you made in this thread as it's confirming my feelings on this as well. Given what you said (and what I already suspected), I'm not really sure why umbrella insurance is so popular with our crowd and, admittedly, most financial advisers.

I think I might start keeping a log of just how much money I'm saving on premiums I'm not paying of umbrella, termite, identity theft, extended warranties, and probably several other policies I'm not buying that so many other people are incentivized through fear to buy. I just really hate insurance and my sense tells me that a company wouldn't sell me a policy unless they had every intention of making more money off of me than they'll give back to me.

Policies i have - health, home owners, and auto (with duplicate health parts in that removed).

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Re: Do you carry Umbrella Insurance?

Post by Galaxy8 » Tue Jun 11, 2019 7:36 am

I have a severely negative net worth, but my profession makes me a target for lawsuits. Therefore, I carry $2m umbrella.

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Re: Do you carry Umbrella Insurance?

Post by azanon » Tue Jun 11, 2019 7:38 am

mptfan wrote:
Mon Jun 10, 2019 10:11 pm
willthrill81 wrote:
Mon Jun 10, 2019 7:03 pm
mptfan, just to be clear, given your professional expertise and experience, you would not recommend that individuals purchase umbrella liability on top of homeowner's insurance and auto liability?
At the end of the day, each person has to make whatever decision is right for them based on their risk tolerance.
I really found this comment interesting. I see at least a couple of people I know are loaded up with equities, but then say they have an umbrella policy. What gives?

Surely a chance for a 1929-32 repeat is greater than the individual chance of losing a lawsuit that extends significantly beyond your regular policy limits.

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Re: Do you carry Umbrella Insurance?

Post by mptfan » Tue Jun 11, 2019 8:24 am

dknightd wrote:
Mon Jun 10, 2019 6:40 pm
I'm was thinking around $1m. But that might not be enough. I guess we'll decide after we meet with insurance agent.
This reminds me of the adage...never ask your barber if you need a haircut.

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Re: Do you carry Umbrella Insurance?

Post by boglerdude » Tue Jun 11, 2019 7:24 pm

TomatoTomahto wrote:
Tue Jun 11, 2019 7:10 am
boglerdude wrote:
Mon Jun 10, 2019 10:23 pm
> I suffered from heat exhaustion the other day and didn't fully realize it until I woke up on the floor. I literally passed out. What if that had happened while I was driving?
You didnt know that was possible. No foreseeable negligence. Thats why cases always settle (for w/e the policy limits are) rather than the plaintiff risking $250k in legal fees, and spending years in court
And now he knows. Should he stop driving?
Yeah...now that he knows he could pass out, he shouldnt drive if there are symptoms of heat exhaustion.

>I might start keeping a log of just how much money I'm saving on premiums I'm not paying of umbrella, termite, identity theft, extended warranties, and probably several other policies I'm not buying that so many other people are incentivized through fear to buy

Raising your auto to 1M is reasonable, and cheap

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Re: Do you carry Umbrella Insurance?

Post by willthrill81 » Tue Jun 11, 2019 7:29 pm

mptfan wrote:
Tue Jun 11, 2019 8:24 am
dknightd wrote:
Mon Jun 10, 2019 6:40 pm
I'm was thinking around $1m. But that might not be enough. I guess we'll decide after we meet with insurance agent.
This reminds me of the adage...never ask your barber if you need a haircut.
:thumbsup

It took many years for me to convince my parents that their insurance agent did not have their best interests in mind. He convinced them that buying a whole life policy on me as a child would be a good investment. :oops:

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“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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abuss368
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Re: Do you carry Umbrella Insurance?

Post by abuss368 » Tue Jun 11, 2019 8:03 pm

Yes. In my opinion it is very cheap and provides additional protection.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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willthrill81
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Re: Do you carry Umbrella Insurance?

Post by willthrill81 » Tue Jun 11, 2019 8:55 pm

abuss368 wrote:
Tue Jun 11, 2019 8:03 pm
Yes. In my opinion it is very cheap and provides additional protection.
By that logic, shouldn't we take out insurance on our cell phones? It's cheap and provides additional protection.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

Rudedog
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Re: Do you carry Umbrella Insurance?

Post by Rudedog » Tue Jun 11, 2019 9:09 pm

3 million

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abuss368
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Re: Do you carry Umbrella Insurance?

Post by abuss368 » Wed Jun 12, 2019 5:53 am

willthrill81 wrote:
Tue Jun 11, 2019 8:55 pm
abuss368 wrote:
Tue Jun 11, 2019 8:03 pm
Yes. In my opinion it is very cheap and provides additional protection.
By that logic, shouldn't we take out insurance on our cell phones? It's cheap and provides additional protection.
You can but I never have. Look at possible exposure. Home, auto, general liability. Do you carry an umbrella policy?
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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willthrill81
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Re: Do you carry Umbrella Insurance?

Post by willthrill81 » Wed Jun 12, 2019 9:21 am

abuss368 wrote:
Wed Jun 12, 2019 5:53 am
willthrill81 wrote:
Tue Jun 11, 2019 8:55 pm
abuss368 wrote:
Tue Jun 11, 2019 8:03 pm
Yes. In my opinion it is very cheap and provides additional protection.
By that logic, shouldn't we take out insurance on our cell phones? It's cheap and provides additional protection.
You can but I never have. Look at possible exposure. Home, auto, general liability. Do you carry an umbrella policy?
I do carry an umbrella policy, but I waffle about it regularly. Premiums being inexpensive is not persuasive alone to me. I view the likelihood of actually needing it to be very tiny.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

dknightd
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Re: Do you carry Umbrella Insurance?

Post by dknightd » Wed Jun 12, 2019 9:29 am

mptfan wrote:
Tue Jun 11, 2019 8:24 am
dknightd wrote:
Mon Jun 10, 2019 6:40 pm
I'm was thinking around $1m. But that might not be enough. I guess we'll decide after we meet with insurance agent.
This reminds me of the adage...never ask your barber if you need a haircut.
I don't know how I can decide if I don't what it will cost. I suspect the insurance agent will be able to provide with this information.

dknightd
Posts: 1628
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Re: Do you carry Umbrella Insurance?

Post by dknightd » Wed Jun 12, 2019 9:29 am

dknightd wrote:
Wed Jun 12, 2019 9:29 am
mptfan wrote:
Tue Jun 11, 2019 8:24 am
dknightd wrote:
Mon Jun 10, 2019 6:40 pm
I'm was thinking around $1m. But that might not be enough. I guess we'll decide after we meet with insurance agent.
This reminds me of the adage...never ask your barber if you need a haircut.
I don't know how I can decide if I don't know what it will cost. I suspect the insurance agent will be able to provide with this information.

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