Comments on: Who Needs an Umbrella? http://advancedpersonalfinance.com/who-needs-an-umbrella/ Moving beyond the basics Thu, 04 Dec 2008 07:15:52 +0000 http://wordpress.org/?v=2.2.2 By: J. Brown http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-27888 J. Brown Mon, 02 Jun 2008 17:54:13 +0000 http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-27888 The majority of my assets are in retirement accounts (IRA's, specifically). I used to have an umbrella policy, but was told that if I were sued, the money in my IRA could not be looked at to satisfy any judgment. Is this true? Where can I go to find additional info on this? Anyone got any ideas? Thanks. The majority of my assets are in retirement accounts (IRA’s, specifically). I used to have an umbrella policy, but was told that if I were sued, the money in my IRA could not be looked at to satisfy any judgment. Is this true? Where can I go to find additional info on this? Anyone got any ideas? Thanks.

]]> By: MossySF http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-291 MossySF Wed, 27 Jun 2007 00:35:21 +0000 http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-291 You can be sued for more than your assets. And if you lose, you declare bankruptcy and wipe it off your slate. Hence, the only point of somebody doing it would be just vindictiveness and the courts would cap the award to your assets just to avoid that kind of waste of time. I have an umbrella myself -- I don't recall my agent ever asking about my assets so I don't think it's really a requirement. They do require you have max auto/renters/homeowners though. Actually turned out to be near zero extra cost since getting 3 policies from the same company gave me a multi-line discount that covered most of the difference. You can be sued for more than your assets. And if you lose, you declare bankruptcy and wipe it off your slate. Hence, the only point of somebody doing it would be just vindictiveness and the courts would cap the award to your assets just to avoid that kind of waste of time.

I have an umbrella myself — I don’t recall my agent ever asking about my assets so I don’t think it’s really a requirement. They do require you have max auto/renters/homeowners though. Actually turned out to be near zero extra cost since getting 3 policies from the same company gave me a multi-line discount that covered most of the difference.

]]> By: Art Dinkin http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-287 Art Dinkin Tue, 26 Jun 2007 02:51:16 +0000 http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-287 You wrote "It’s my understanding that you can’t be sued for more money than you have assets." I am not sure I agree. A young professional with a strong income potential can be sued for future earning. EVERYONE should have an umbrella policy. My $1,000,000 policy is only $110 per year. Where some people may feel the pinch is your umbrella policy may require that you carry higher limits on your other coverages like auto and home. You wrote “It’s my understanding that you can’t be sued for more money than you have assets.” I am not sure I agree.

A young professional with a strong income potential can be sued for future earning. EVERYONE should have an umbrella policy. My $1,000,000 policy is only $110 per year. Where some people may feel the pinch is your umbrella policy may require that you carry higher limits on your other coverages like auto and home.

]]> By: samerwriter http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-285 samerwriter Mon, 25 Jun 2007 19:41:51 +0000 http://advancedpersonalfinance.com/who-needs-an-umbrella/#comment-285 Your last point is important. When we got umbrella insurance, our other premiums increased by a fair bit. Unfortunately I don't remember the exact amount, but I believe it was more than the cost of the umbrella policy. I.e. our umbrella policy may have cost us only $200/year, but the increased premiums on other policies was another $300 or so. Of course that value will vary, depending on your existing coverage. Your last point is important. When we got umbrella insurance, our other premiums increased by a fair bit. Unfortunately I don’t remember the exact amount, but I believe it was more than the cost of the umbrella policy.

I.e. our umbrella policy may have cost us only $200/year, but the increased premiums on other policies was another $300 or so.

Of course that value will vary, depending on your existing coverage.

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