Posted: 8/23/2026 10:08:44 PM EDT
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Been thinking about taking out an umbrella policy to protect assets in case some people do something and I wind up in court with their ambulance chasers trying to bankrupt me. It would be about a couple thousand a year for a policy that would give me full coverage past what my current insurance provides. I think the risk is low but the potential downside is everything in my unsheltered accounts. Anyone doing it? Anyone have to use it? |
https://www.guntechtips.com
| Generally speaking, if you have significant assets ( a subjective term) a Personal umbrella is money well-spent, esp. if you live in a sue-happy state with large jury awards, like LA. Several thousand seems high for a 1 - 3 million umbrella unless you have many exposures like more than just 3 cars a, a home, boat and rental property. Check with a good independent agent in your area. |
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Yes, but policies vary. The company I use for auto and home insurance requires my adult children who don’t live with me to have their vehicles on my policy at max coverage levels. I couldn’t get an explanation other than “our underwriter requires it”. I had to find another company that would insure without first having my auto/home policy and having my adult children on anything. |
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VERY common.... if you have substantial assets to protect, own a swimming pool, own any rental property, etc. Mine used to be $400-$500 a year for $2mil. Its about $900 a year now. It impacts your other insurances possibly, because their liability limits have to be at a substantial level before the umbrella kicks in, mandated by the umbrella. My auto policy didn't require any changes because I was already WAY above the state minimums. |
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You want it to go over all of your policies that have a "liability" element. Including your Homeowners. Having moved several times over the years I've noticed that the Umbrella may or may not be available over your Auto coverage. In lawsuit unfriendly states like Nevada a given carrier may not even offer it or make it way too expensive to be practical. Having said that we have always carried a healthy Umbrella policy. I worked for a large carrier and we had monthly "Large Loss Reviews". Select claims over $1 million. It was amazing to see some of the crazy circumstances that got our insureds drawn into mega claims. |
