When Is An Umbrella Policy A Good Idea?

[@lkj0822g]

At one point in my life, I owned a store and a coin operated laundromat. Probably 6-8 times, I get a call from someone allegedly from an attorney's office asking about my insurance coverage. "What's this about?" "Oh, we represent so-and-so, who slipped and fell in a puddle of water at your laundry." "OK, send me a formal inquiry on your firm's letterhead and I'll be sure to forward to my insurance company." Usually, never heard anything else about it. I was talking to my agent who told me that a lot of these "billboard" lawyers are just looking for a $5000 payday. Make a dubious claim and "settle" for a few thousand dollars.

[@90kevin20]

Wow. Freaking morons. Sue happy country.

[@ZacharyBuhler]

I recently picked up a $1M umbrella policy after my wife and I got close to a $1M net worth. I didn’t want that extra liability and it was only $400 per year!

[@TwinJalanugraha]

Same here, a very good idea.

[@mhsvz6735]

28 January 2022: We have a $5 million umbrella policy through USAA for an annual premium of $806.11. We also have a $2 million policy through The Hartford for our business.

[@CryptoDad83]

God bless everyone in this comment section. I pray you and your family are always protected by the love of God 🙏💓

[@ElainesDomain]

Thank you Bryan.

[@dapeace316]

Amen to you and your family as well Bryan

[@Ratkill9000]

Get a dash cam, to keep people honest.

[@charlesf.5414]

Yes!!! Dash cameras are cheap and they can save you from so much! It was the only thing that prevented me from being at 100% fault for an accident. Someone cut me off then brake checked me, it would have been he said he said but the camera told the truth!

[@untouchable360x]

Get a Tesla

[@alienresearchlab]

Umbrella policy is def needed if you have something to lose. They are cheap. I contacted my home/car insurer (USAA) to inquire and they said it was a better deal to raise my liability insurance on my house and car to $1M each vs leaving them the way they were and buying a $2M umbrella policy. Of course this means that the $2M is split between house and car at $1M each so you actually have less coverage. Something to consider.

[@hilarywalton1143]

In Germany everyone is required to have it. Especially if you have children or own property. But Germany has excellent restrictions on lawsuits.

[@louisbouchard6869]

I have to add to Dave's requirements for Umbrella Insurance. If you live in an area where there are quite a few 6-figure income earners relative to the general population, you should get umbrella insurance. For example, I live in a community with the highest number of doctors and 6 figure income healthcare workers in the country. I therefore feel that I need the extra protection just in case something happens.

[@andy6302]

He pretty much addressed that when he mentioned your perceived wealth. If a lawyer or general public would assume you have $1mil net worth you should have an umbrella in any scenario.

[@dcamnc1]

My N*tionwide 1M umberlla policy was only about $130 a year. Glad I have it.

[@djpuplex]

Insurance is only as good as the insurers ability to follow through. Better to have it and not need it than need it and not have it.

[@steve03260]

Note to self ... break check Dave ....

[@alinatamashevich3354]

If you have money in the bank, you will be sued. If you are judgement proof, no worries.

[@ThePeterDislikeShow]

That's why you buy physical assets like rare coins and rare art and you don't tell anyone about it.

[@insideoutsideupsidedown2218]

They go after the insurance company, not you.

[@rodneymyles5991]

No they go after you and the insurance company steps in to protect your best interest per the terms of the policy. If a lawsuit is filed it does not name the insurance company as a defendant.. it names the insured.

[@alinatamashevich3354]

If you are responsible, you gonna pay.

[@saulgoodman2018]

Umbrellas are good when it's raining.

[@TALLXXL]

GOOD.. QUESTION