[billethkid]

If one has the proper liabilities covered in their home owners, auto, golf cart, boat and ATV policies why have an umbrella policy too?

[CFrance]

I thought it was for extra coverage, like up to $1M, in case you get sued.

Don't quote me, though. We had one when our kids were in high school, driving. Haven't bought one down here yet, but we're thinking about it.

[Cedwards38]

One can be sued and held liable for a host of reasons beyond home, auto, and cart. If you open a door and hit someone, you could get sued. If you hit a golf ball that hits someone, you could get sued. If you make an error of any kind that causes someone else to realize a loss of any sort, you could get sued. It just gives you a blanket to cover the rest of your life experiences.

[784caroline]

Originally Posted by billethkid

If one has the proper liabilities covered in their home owners, auto, golf cart, boat and ATV policies why have an umbrella policy too?

All depends on how much you have to lose. For example, do you have 100/300 liability on your golf cart and auto? It is probably the most recommended policy limits BUT what if your net worth is $1 million plus and in a flash....you are responsible for very serious accident causing death to a young professional or injury to one or more that would require long term medical care. (You dont need to be recless for this situation to occur..it could result from a medical emergency or you just black out while driving etc)

The first thing the injured parties counsel would do is to quickly deterime your net worth or "style of living" and believe me they will sue you for the Max they could. Most likely they would not get it but while you are waiting for the case to settle (which could be up to 2 years) you may be sued for up to $1 Million while you only have insurance covering you up to $300K. That would be a tough 2 years while you are waiting to settle.

So to answer your question, Not everyone needs an Umbrella policy, but if your individual financial situation is such and you dont have an umbrella policy, your could be at risk.

Umbrella policies are relatively reasonable in price ($200 range+/- $50) and it would typically cover you for auto, home golf cart boat etc. Cost depends upon your exposure (# of cars/boats/CG's) as well as exisitng limits on current policies.

[rubicon]

First in order to secure an Umbrella Polcy most companies require sufficient limits under your Auto and Homeowners Policies, us usually 100/300/100

Second considering an Umbrella consider what you have the potential to lose the higher the amount the more likely the need for an Umbrella Policy.

Third an insurance company is obligated to pay underlying losses and will do its best to keep you from being exposed

Most situation are settled within the underlying limits.

However, I have been in the insurance business my entire career and a student of insurance for as long and I have had n umbrella policy that entire time . The cost to add an Umbrella is minimal considering the reduction of financial risk

I opine you decide

Personal Best Regards

[Abby10]

We just recently purchased an umbrella policy based on the same reasoning that 784caroline and rubicon mention in the above posts. One other reason that we chose to do it is because we are currently putting some of our investments into rental properties and felt an even greater need to cover the possible risks. We're keeping our fingers crossed that nothing like that ever happens, but if it did, it does give you greater peace of mind to know that your entire life savings would not be wiped out. Just as the others mentioned, it really didn't cost that much more to be able to sleep better at night.

[kittygilchrist]

This has doubtless been said, but put simply: The reason for an umbrella policy is that one worth more than one's homeowners policy offers to pay.

[jmvalcq]

The umbrella policy is an excess liability policy, that is it is used after your auto and homeowners liability is exhausted. It also covers the cost of your defense if your sued for amount that is above the auto or home liabilities. Your assets can be taken, but it's not just your assets they can go after, they can also attach your income. The 100/300 liability that some people have is very outdated. A lot of insurance companies have a minimum of 250/500 before you can get a personal liability policy.

[rubicon]

Perhaps 100/300 is outdated and perhaps the 250/500 is a decision by the Underwriting Dept for some carriers. I am with a major writer and they have never requested that I increase underlying limits in order to renew my Umbrella Policy and they can so request prior to the renewal period.

Having said that it would do no harm for me to inquire with my agent as to limits, etc


Personal Best Regards:

[GatorFan]

There are certain assets in Florida that are judgement proof and other assets that are not. There is no one size fits all. A professional insurance agent would have discussed this with you when you purchased your insurance.

[784caroline]

Originally Posted by GatorFan

There are certain assets in Florida that are judgement proof and other assets that are not. There is no one size fits all. A professional insurance agent would have discussed this with you when you purchased your insurance.

Can you clarify what you mean when you say "Judgement Proof" ?? Examples would help!

[GatorFan]

Pensions, social security, annuities, Ira & 401K's are some of the judgement proof assets in Florida.

CDs, Stock, Bonds, Savings & Checking Accounts, Rentals are some of the assets that are not judgement proof in Florida.

This is a conversation you should have with a professional financial agent or your property casualty agent to determine what your liability exposure is and how much coverage you should purchase.

Judgement proof means they can not be touched if someone gets a judgement against you. Unsafe investments can be taken.

[784caroline]

Never heard the term "judgement proof" before.

Interesting concept. Sort of like what included in probate .... everything except what you can put a beneficiary on ie... life insurance, ira, 401K etc.

[zummy]

My suggestion is you get under insured coverage here in Florida because of so many uninsured and underinsured cars and golf carts

[GatorFan]

Uninsured/Underinsured motorist coverage is another important coverage. Find an agent who talks coverage not premium. We all buy insurance to protect our investments and assets.