FWIW,
WCI recently did an interview with Jay Adkisson, a noted asset protection attorney. Adkisson agreed that people should have umbrella insurance and said that he carries a $3M policy.
They did not discuss how much of his money is in protected assets. However, since this is his field, I assume he knows the answers.
The entire interview is worth reading or listening to the podcast. They covered a lot of territory.
How much Umbrella Insurance?
Re: How much Umbrella Insurance?
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either |
--Swedroe |
We assume that markets are efficient, that prices are right |
--Fama
Re: How much Umbrella Insurance?
Good points. Followup question regarding retirement. Generally, does need or risk change in retirement, or is this something that's mostly based on net worth that you want to protect? Is this something that one should plan to maintain for a lifetime? Saw some threads where protected account assets might not need to be considered. Anyone who retired in the last 5 years since this thread started give this any thought?sfchris wrote: ↑Wed Jun 01, 2016 1:26 pm I say this in all Umbrella threads: Be aware that Umbrella Insurance is not standardized like other insurance. What it covers and doesn't cover varies widely. There are subtle complications, such as if you are a member of a non-profit board, etc. Without reading the policy, you should not make assumptions about what is covered.
If you are serious, you should purchase umbrella insurance from an agent who has thoroughly researched the umbrella insurance they offer.
- FelixTheCat
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Re: How much Umbrella Insurance?
My State Farm agent told me "The amount of assets you have."
Felix is a wonderful, wonderful cat.
Re: How much Umbrella Insurance?
How much added risk do you have, above the typical household's?UnLearnYourself wrote: ↑Fri Mar 05, 2021 10:38 am Curious how these costs stack up against what you've all seen:
$1,000,000 Limit = $145
$2,000,000 Limit = $254
$3,000,000 Limit = $348
$5,000,000 Limit = $508
I'm thinking $1mil to start, but am always open to the feedback of the bogle hivemind
Are you a landlord? Do you have other activities or possessions that would increase your risk?
If not, $0.
If so, to what extent? Would have to be a significant level of added risk to warrant exceeding $2M coverage, imo.
Re: How much Umbrella Insurance?
Appreciate the heads up. Just hit play on it.
FWIW one of the first things he states is how conservative he is financially.
I also wonder how much one's perspective has shifted prior to folks making a statement for the masses like this.
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Re: How much Umbrella Insurance?
We own a 3 family, which is the main draw to a policy. And as a young family trying to save aggressively we want to protest our assets assuming they'd be at risk in worst case scenarios.gr7070 wrote: ↑Fri Mar 05, 2021 1:12 pmHow much added risk do you have, above the typical household's?UnLearnYourself wrote: ↑Fri Mar 05, 2021 10:38 am Curious how these costs stack up against what you've all seen:
$1,000,000 Limit = $145
$2,000,000 Limit = $254
$3,000,000 Limit = $348
$5,000,000 Limit = $508
I'm thinking $1mil to start, but am always open to the feedback of the bogle hivemind
Are you a landlord? Do you have other activities or possessions that would increase your risk?
If not, $0.
If so, to what extent? Would have to be a significant level of added risk to warrant exceeding $2M coverage, imo.
Re: How much Umbrella Insurance?
Certainly sounds like a policy is warranted.UnLearnYourself wrote: ↑Fri Mar 05, 2021 3:50 pmWe own a 3 family, which is the main draw to a policy. And as a young family trying to save aggressively we want to protest our assets assuming they'd be at risk in worst case scenarios.gr7070 wrote: ↑Fri Mar 05, 2021 1:12 pmHow much added risk do you have, above the typical household's?UnLearnYourself wrote: ↑Fri Mar 05, 2021 10:38 am Curious how these costs stack up against what you've all seen:
$1,000,000 Limit = $145
$2,000,000 Limit = $254
$3,000,000 Limit = $348
$5,000,000 Limit = $508
I'm thinking $1mil to start, but am always open to the feedback of the bogle hivemind
Are you a landlord? Do you have other activities or possessions that would increase your risk?
If not, $0.
If so, to what extent? Would have to be a significant level of added risk to warrant exceeding $2M coverage, imo.
Anecdotally, I have commonly heard $1M is usually enough to make for an easy settlement. Obviously there's a ton of factors that go into any potential claim.
I've heard the more than your net worth recommendation, as well. Largely, one's net worth has no bearing on the amount of damage cause and thus the suit, largely.
Young family? $1M could be an easy default choice. High income young family? Maybe splurge.
There's no obvious answer, at least not to me.
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Re: How much Umbrella Insurance?
$10M limit with Chubb, $1,200 premium. Covered under home/auto policy are 2 autos and primary residence, each with underlying $500K liability coverage.UnLearnYourself wrote: ↑Fri Mar 05, 2021 10:38 am Curious how these costs stack up against what you've all seen:
$1,000,000 Limit = $145
$2,000,000 Limit = $254
$3,000,000 Limit = $348
$5,000,000 Limit = $508
I'm thinking $1mil to start, but am always open to the feedback of the bogle hivemind