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View Full Version : Do you have umbrella coverage?


alnorth
10-09-2006, 06:43 PM
Heard about it on the internet, and asked my agent to quote me. Apparently it would cost me only about $150/year to add 1 million in liability coverage on top of my auto and renter's policy. I figure with my awesome luck and our sue-happy country, I'll be that 1 guy that gets hit with a crippling lawsuit.

What do you think?

Rain Man
10-09-2006, 06:55 PM
I've got it. It's a cheap way to prevent disaster, and I also figure that if somebody sues me for an amount that large, the insurance company will go all ninja on them if they're the ones who would have to write the check.

TinyEvel
10-09-2006, 06:57 PM
Not a god thing for America.

I think stuff like this makes people sue people. "Hey, the guy has a million in umbrella coverage. Cha-ching."

I think Rolle should have to pay LJ a million dollars for almost wrenching his neck off.

Demonpenz
10-09-2006, 06:59 PM
It's a really really good idea if you have aggresive dogs like pit bulls.

siberian khatru
10-09-2006, 06:59 PM
Ned? Ned Ryerson?!

Rain Man
10-09-2006, 07:00 PM
Not a god thing for America.

I think stuff like this makes people sue people. "Hey, the guy has a million in umbrella coverage. Cha-ching."



Please don't sue me.

Fat Elvis
10-09-2006, 07:05 PM
Absolutely. It is $153 a year I hope I never have to use, but if I do, it will be one of the best investments I have ever made.

DaFace
10-09-2006, 07:08 PM
I have a policy of carrying an umbrella when it rains. Does that count?

Rain Man
10-09-2006, 07:10 PM
I have a policy of carrying an umbrella when it rains. Does that count?

Hey...that's a pretty good idea.

Spott
10-09-2006, 07:15 PM
My umbrella already provides good coverage.

Amnorix
10-10-2006, 06:56 AM
If you have reasonably substantial assets (own a home with alot of equity is enough right there) then getting an umbrella policy is a no brainer.

S**t happens, do you want to lose your house or every dime you have in the bank because of it?

I note that we could sit around and argue about life insurance (whole or term, or none) or disability insurance or some other things like that, but honestly, an umbrella policy is a no-brainer if you have assets, because it gives so much in a "worse case" scenario and costs so little.

chief52
10-10-2006, 07:19 AM
If you have reasonably substantial assets (own a home with alot of equity is enough right there) then getting an umbrella policy is a no brainer.

S**t happens, do you want to lose your house or every dime you have in the bank because of it?

I note that we could sit around and argue about life insurance (whole or term, or none) or disability insurance or some other things like that, but honestly, an umbrella policy is a no-brainer if you have assets, because it gives so much in a "worse case" scenario and costs so little.

Let me ask you. What would I have to do in order to lose everything? I am covered...at least for a lot...in the case of a car accident. I do not go around getting in fights or exhibiting violent behavior. What would I be protecting myself against? I know it is a sue happy country, but just wondering.

Sully
10-10-2006, 07:21 AM
Ned? Ned Ryerson?!

Dammit!!!
You beat me to it!!!!

Well played.

ROFL

Simplex3
10-10-2006, 07:39 AM
What would I be protecting myself against? I know it is a sue happy country, but just wondering.
Some jerk who "slips" and gets a "neck injury" on your sidewalk in the snow because you didn't shovel it fast enough (ie when each individual flake hit).

Someone who breaks into your house, in the process gets cut up on the window, sues you, and wins (actually happened).

Someone's brat kid who impales himself trying to jump your fence.

The options are limitless. Be sure it also covers acts at work, however. I used to carry one when I was working for myself, and the company that bought me has one that covers all of us.

As mentioned above, one of the great things is that the insurance company really, REALLY won't want to pay out, so they'll join the legal fight. The policy should state how much control they have over your defense, make sure you still get to hire your own lawyer.

Hog Farmer
10-10-2006, 07:42 AM
Examples: I own rental houses. If a tenant trips and falls off the front porch and breaks their friggin neck. I'm sued.

I own a rock yard where people can pull in and browse over a variety of different type landscaping boulders and flagstone. If their little brat kid decides to climb up on to a boulder and he jumps off and breaks a leg. I'm sued!

If I get out of my vehicle and forget to put it in park, it rolls backward and smashes somebodys poor little poodle. I'm sued.

If I pick my nose and flick the booger and put somebodys eye out. I'm sued!

Simplex3
10-10-2006, 07:43 AM
If I pick my nose and flick the booger and put somebodys eye out. I'm sued!
LMAO You should probably see an EENT about that.

Bob Dole
10-10-2006, 08:02 AM
If I pick my nose and flick the booger and put somebodys eye out. I'm sued!

[kevin meaney]Who do you think you are, running around flicking boogers at people? You could put somebody's eye out with that thing. They could sue us and we'd lose the house!! Running around flinging boogers at people...you go back upstairs and blow that thing out.[/kevin meaney]

Rain Man
10-10-2006, 08:29 AM
Let me ask you. What would I have to do in order to lose everything? I am covered...at least for a lot...in the case of a car accident. I do not go around getting in fights or exhibiting violent behavior. What would I be protecting myself against? I know it is a sue happy country, but just wondering.

It only takes one freak event.

The other nice thing about an umbrella policy (I think), is that it represents a big pot of money sitting out there as a settlement if you do get sued. If someone sues you for $2 million because their kid ran into your yard and into the path of your lawn darts and took a Jart to the brain, the insurance company may offer them a half-million in cash to go away, and they'll take it rather than fight for the whole $2 million. You then go on with your life, other than the guilt of killing a kid with a lawn dart.

DMAC
10-10-2006, 08:38 AM
Heard about it on the internet, and asked my agent to quote me. Apparently it would cost me only about $150/year to add 1 million in liability coverage on top of my auto and renter's policy. I figure with my awesome luck and our sue-happy country, I'll be that 1 guy that gets hit with a crippling lawsuit.

What do you think?You will have to up your coverage on your car as well, if it's not already there.

Most likely to 250/500 for BI and UM.

DJ's left nut
10-10-2006, 09:11 AM
You really just have to hit the wrong guy.

Maybe he's not wearing his seatbelt. In most states, that's not an allowable mitigating factor for liability (i.e., if you drill some jackass who's not wearing his seatbelt, he gets ejected and incurs 600K in medical bills, you're on the hook for the full 600K if you caused the accident, even if the seat belt would have prevented all his injuries).

The concern with the umbrella policy is that, while it represents a settlement amount, it's also a bigger pot that the Plaintiff now knows about. It simply gives them slightly deeper pockets to go for and will make them more likely to sue. Granted, you're covered, but your Insurance company will be right pissed at you.

On the plus side, it will almost guarantee a settlement. A jury is not allowed to know that you have the policy (collateral source), but the Plaintiff is allowed to find out about it prior to trial. So while the Plaintiff knows he won't be able to tell the jury about this big pool of money that the big bad insurance company will have to pay out of (well, unless the Defense attorney screws up badly), he still knows that it's there so he'll settle just to make sure he gets some cut of it.

Bob Dole
10-10-2006, 09:16 AM
You then go on with your life, other than the guilt of killing a kid with a lawn dart.

Why would there be any guilt from killing a trespasser with a Yard Dart? (Assuming you still had a set of the original Yard Darts.)

NY CHIEF
10-10-2006, 09:36 AM
If you have assets, its a no brainer. better to have it than wish you did

Rain Man
10-10-2006, 09:50 AM
Why would there be any guilt from killing a trespasser with a Yard Dart? (Assuming you still had a set of the original Yard Darts.)

Good point. The brat deserved it anyway.


On the subject of out-of-control kids, I'm trying to rent out my basement apartment at the moment, because my long-time tenant moved out. (I'm stifling tears since she paid her rent well and took care of the place). One of the lookers was a woman who knocked on my door, and when I went to open it she had a kid of about seven who was laser-beaming a stare into my house.

I opened the door and this kid BOLTED past me into my living room. The mother is yelling after him and corraled him while he was still checking stuff out. She then asks to see the apartment (for "the boy's father", and by the way, will I be checking credit because he has bad credit but he always pays his rent). I took her down to the apartment, and we went through the laundry room. The kid bolts for the main water shutoff and starts pulling on the pipe with all his might. I actually yelled at the kid, because I thought he was going to flood the place, but the mother got to him before I could.

We then went into the apartment, which was empty. Harmless, right? Nope. The kid found the venetian blinds and started yanking on the cords until the mother went over and stopped him (before I could yell at him this time).

We went upstairs, and she asked for an application for her friend. I gave her an application, but as I started to hand it to her, the kid shows up out of nowhere, jumps up, and head-butts my arm, knocking the form out of my hand. The mother picked it up and left, and fortunately did not return it.

I felt kind of sorry for the woman, because the kid was obviously "not right in the head". At the same time, I'm darn glad that she didn't return an application, not that Mr. Bad Credit would have passed our credit checks anyway.

alnorth
10-10-2006, 06:37 PM
Let me ask you. What would I have to do in order to lose everything? I am covered...at least for a lot...in the case of a car accident. I do not go around getting in fights or exhibiting violent behavior. What would I be protecting myself against? I know it is a sue happy country, but just wondering.

A car can do a huge amount of damage.

Your driving, something distracts you, or your sleepy, or whatever, you veer off and send an SUV along with mom, dad, and 2 kids through a ditch and into a concrete pole. Mom and kid #1 have life-altering injuries, dad and kid #2 are dead.

I dont care what kind of high auto limits you have, they will blow right through them, sending you straight to bankruptcy. If you have a decent job, the court may not let you go Ch. 7, and your paying something for the rest of your life.

Think of these hulking machines we send hurtling down the road at 60, it doesnt take much.

An umbrella is pretty cheap. Yeah, I dont have many assets right now, but 1) I dont want to go bankrupt, and 2) If I do F up really badly, I want the people I hurt to get their compensation. The other driver and passengers rack up a giant ton of medical bills, I go bankrupt, and they now get to join me in bankruptcy for something that was my fault. Thats not really fair to them.

dtebbe
10-10-2006, 06:40 PM
Just make sure that the upper end of your other coverages extend to where the umbrella starts. For example my unbrella starts at 500k, so I had to bump the upper limits of my other liability policies up to 500k. This caused my auto insurance to go up a little, but still not bad. Everyone should really have one. All it would take is for you to cause a multi-vehicle pileup and you'd be out of insurance pretty quick, especially if anyone sued (very likely).

DT

burt
10-10-2006, 06:52 PM
On the bright side....I found an umbrella today!!!!

chief52
10-10-2006, 06:57 PM
Just make sure that the upper end of your other coverages extend to where the umbrella starts. For example my unbrella starts at 500k, so I had to bump the upper limits of my other liability policies up to 500k. This caused my auto insurance to go up a little, but still not bad. Everyone should really have one. All it would take is for you to cause a multi-vehicle pileup and you'd be out of insurance pretty quick, especially if anyone sued (very likely).

DT


Good point on not leaving a "hole" in your coverage. I have thought about umbrella coverage, but never really looked into it. Owning well over half my home as well as investments, retirement, cash etc., I sure would have a lot to lose if some freak even occurred.

Skip Towne
10-10-2006, 07:14 PM
They can't take my house. I'll hook onto it and pull it someplace where they can't find it.

Logical
10-10-2006, 07:45 PM
I am not sure homeowners don't get this coverage automatically. I am pretty sure whatever your max liability on your homeowners is gets applied to your car insurance in the event of something catastrophic.

JimNasium
10-10-2006, 07:47 PM
They can't take my house. I'll hook onto it and pull it someplace where they can't find it.
They will find you, take your travel home, take your stash and beat you with a billy club you dirty reefer head.

NaptownChief
10-10-2006, 09:37 PM
I am not sure homeowners don't get this coverage automatically. I am pretty sure whatever your max liability on your homeowners is gets applied to your car insurance in the event of something catastrophic.


You do have some personal liability but it is fairly small...usually a couple hundred grand at most.


I had a client whose wife got in an auto accident with her sister in the car. She hit a 18 wheeler and it killed her sister. Truck driver hurt his back. The brother in law sued him for wrongful death and won a $750K judgement and the truck driver got like $150k for back injuries...throw in attorney fees and the total bill came in around $1million. And you can quickly do the math had multiple people been killed.

If you have any reasonable assets at all I would highly recommend having at least a $1million policy but $2million won't cost you much more and is probably worth having since it is pretty cheap. Unlikely to ever use it but if you do it could easily save your financial life.

alnorth
10-06-2007, 07:10 PM
Public Service Announcement bump: Had my annual insurance review with my agent, and I decided to raise the umbrella limit to $3 million for $350 per year. So, for a little under $1/day I am almost guaranteed to never pay anything if I lose a lawsuit. It would take one hell of a pile-up on the freeway to be responsible for over $3.5M.

If you are driving around with state minimums, you are taking a huge chance these days. I imagine wage garnishment for 20 years or going BK is not a lot of fun.

BWillie
10-06-2007, 07:40 PM
If you can afford it, get it. It really isn't very expensive for what you get. You never know what dbag will try to sue ur ass

Amnorix
10-06-2007, 07:56 PM
I am not sure homeowners don't get this coverage automatically. I am pretty sure whatever your max liability on your homeowners is gets applied to your car insurance in the event of something catastrophic.


errr....NO.

Your homeowners doesn't sit on top of your car insurance.

Let me be perfectly clear here -- if you have ANY ASSETS WORTH TALKING ABOUT, then you should have an umbrella policy. If you have a bank account, investment accounts, a home, etc. Then it's a total no-brainer.

Smed1065
10-06-2007, 08:04 PM
Get it if any assets at all is all I can say from personal experience!

If something simple happens, they will check your credit and history and file away if it is positive at all. Civil court is a lot different from criminal.

alnorth
10-06-2007, 08:15 PM
Another unspoken benefit of umbrella coverage is the quality of the legal defense you would get. If you have $25,000 of insurance, they may hire the kid 3 years out of law school. What the hell, it's only 25k, and if you lose a $50,000 judgement, tough luck.

If you have a gigantic umbrella policy and have a potentially big lawsuit, the insurance company will likely hire an expensive team of good lawyers and bring out the heavy cannons to defend you.

Smed1065
10-06-2007, 08:34 PM
Another unspoken benefit of umbrella coverage is the quality of the legal defense you would get. If you have $25,000 of insurance, they may hire the kid 3 years out of law school. What the hell, it's only 25k, and if you lose a $50,000 judgement, tough luck.

If you have a gigantic umbrella policy and have a potentially big lawsuit, the insurance company will likely hire an expensive team of good lawyers and bring out the heavy cannons to defend you.

Good post!