Merlin Orr Posted November 19, 2008 Share Posted November 19, 2008 So.. Our insurance lady (auto) calls and tells us it's renewal time. She asks if we wish to increase our personal liability. Damned if I know..... How much is enough? She mumbles something about our "net worth" being in the formula for the amount we should carry. I have no idea why that should factor into the equation as if you are sued over your liability coverages and they come after your personal assets it would hurt just as bad to lose your $50,000 dollar home as your $1,000,000 home - if its the only one you have. If they take all you own it's gonna hurt. Still..the question is ... how much is enough to reasonably protect yourself? Link to comment Share on other sites More sharing options...
blue edge Posted November 19, 2008 Share Posted November 19, 2008 $200. Link to comment Share on other sites More sharing options...
Merlin Orr Posted November 19, 2008 Author Share Posted November 19, 2008 $200. Link to comment Share on other sites More sharing options...
Jim Norman Posted November 19, 2008 Share Posted November 19, 2008 play as we do? I'd certainly look at 7 figures minimum. unless you never had, nor plan on having anything. then you can run naked (from an insurance point of view only please) Jim Link to comment Share on other sites More sharing options...
Merlin Orr Posted November 20, 2008 Author Share Posted November 20, 2008 play as we do? I'd certainly look at 7 figures minimum.unless you never had, nor plan on having anything. then you can run naked (from an insurance point of view only please) Jim And.... I do live in South Texas. Demonstrably one of if not the highest lawsuit per capita location in the USA... Yes, really. Link to comment Share on other sites More sharing options...
Matt Cheely Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. Link to comment Share on other sites More sharing options...
BSeevers Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. Note to self: Investigate Matt Cheely lawsuit Link to comment Share on other sites More sharing options...
Jim Norman Posted November 20, 2008 Share Posted November 20, 2008 Seriously, IF you own your home, you should investigate a policy that covers all. Usually your Home, car, extended liability and other coverages are cheaper as a package. Jim Link to comment Share on other sites More sharing options...
XD Niner Posted November 20, 2008 Share Posted November 20, 2008 As Matt says a $1,000,000 umbrella policy makes a lot of sense. Link to comment Share on other sites More sharing options...
Neomet Posted November 20, 2008 Share Posted November 20, 2008 (edited) Merlin, Given just the net worth of what you have scored out of the classifieds here you should get a 100/300 base policy with a $1,000,000 umbrella. There are a couple reasons for this (beyond where you live). The first is the increasing amount of awards in civil cases from auto accidents. For what it is worth this is driven both by the wildly escalating costs of health care and by juries who believe their role is to the the "good fairy" and award people money from what they apparently believe is a bottomless money pit. An Umbrella policy costs practically nothing compared to your underlying policy. The second reason is that by carrying 100/300 on your liability coverage you can carry 100/300 UM/UIM coverage for when the uninsured jerk on his third DWI with no insurance or a reason to live plows into the side of your vehicle. Your UM coverage then stands in place of the scumbag's...... er, I mean uninsured driver's insurance. In other words you are protecting yourself. That is a huge benefit, particularly in states with a high percentage of uninsured drivers (Texas). edited because I'm paying too much attention to my dinner and not enough to my typing. Edited November 20, 2008 by Neomet Link to comment Share on other sites More sharing options...
wooddog Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. Ditto Link to comment Share on other sites More sharing options...
shred Posted November 20, 2008 Share Posted November 20, 2008 Enough that the insurance company will fight to not-pay their part versus settle. $1M is a good number and as people say, cheap. Link to comment Share on other sites More sharing options...
Nik Habicht Posted November 20, 2008 Share Posted November 20, 2008 I'm with the others on a million at minimum. If you can get more, and the annual premiums aren't particularly onerous --- why not do it? If the day comes when you need it --- will you miss the premium $? Will paying the extra premium impact your life in a meaningful way? Link to comment Share on other sites More sharing options...
Merlin Orr Posted November 20, 2008 Author Share Posted November 20, 2008 Much food for thought... I saved a couple of bucks by getting my auto through a different carrier than my homeowners...but... If I have both HO & Auto on the same policy I could/would probably come out better with a single large umbrella figure rather than going to a larger liability amount on both HO & Auto... Link to comment Share on other sites More sharing options...
Chris Keen Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. I too have a million dollar umbrella, but I have yet to get my agent to answer the question of whether that covers me for some sort of CCW related incident. Link to comment Share on other sites More sharing options...
dstroyed Posted November 20, 2008 Share Posted November 20, 2008 Personal liability is also something to think about if you work with people that could claim you gave them advice that was less than what they had expected. Insurance agent or adjuster? Especially down in the valley. Link to comment Share on other sites More sharing options...
Merlin Orr Posted November 20, 2008 Author Share Posted November 20, 2008 Personal liability is also something to think about if you work with people that could claim you gave them advice that was less than what they had expected. Insurance agent or adjuster? Especially down in the valley. yep... E&O is a must for the biz I am in. Carried by the vendors I work through.... Link to comment Share on other sites More sharing options...
Neomet Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. I too have a million dollar umbrella, but I have yet to get my agent to answer the question of whether that covers me for some sort of CCW related incident. Not to go too far off topic here but the short answer is almost certainly no, but it depends on what actually happens. Say someone is robbing you down at the bank as you make a deposit and you drill the bg with a couple rounds. He/his estate sues you. Your carrier will deny coverage because the loss does not meet the definition of an "occurrence". An occurrence as defined in an insurance contract means an event neither expected nor intended by the insured. You did intend to shoot your attacker so the event does not constitute an occurrence. The question of if your use of force was appropriate does not even come into consideration. Let's assume the same fact scenario but one of your rounds accidentally hits a bystander who sues you. Since you did not intend to shoot that person it would be considered an occurrence and you would probably be afforded coverage. The key thing to remember is does the loss meet the definition of occurrence. I believe the NRA does offer some sort of coverage that will defend you from suits arising out of a justifiable shoot. I have never read one of those policies so have no idea what exactly they cover or what sort of limits of coverage they afford. Sorry if I put anyone to sleep reading this. Contract law is normally about as exciting as watching paint dry. Link to comment Share on other sites More sharing options...
JThompson Posted November 20, 2008 Share Posted November 20, 2008 I have an umbrella policy for 1million that only costs me maybe $40 a year since it also gets me a discount on my other insurance policies. Note to self: Investigate Matt Cheely lawsuit I'm pretty sure I got a blister from shooting one of his guns... hmmmm. Link to comment Share on other sites More sharing options...
gm iprod Posted November 20, 2008 Share Posted November 20, 2008 Curiosity is getting the better of me, On your fingers and or hand?? Link to comment Share on other sites More sharing options...
Carmoney Posted November 20, 2008 Share Posted November 20, 2008 I defend insurance-referred liability lawsuits for a living. My opinion is that even if you're broke at the moment and you think you're pretty well judgment proof, with the cost of medical treatment these days the absolute minimum liability coverage you should consider is $1 million. A million-dollar umbrella policy is cheap--well worth the peace of mind. Every day I deal with clients who wish they had more coverage....even in a defense-friendly litigation climate like Iowa. While you're buying your umbrella policy, tell the agent you want to raise your uninsured/underinsured (UM/UIM) limits up to a million bucks also--for the reasons Neomet cites. If you ever get hurt badly by somebody who doesn't have enough coverage (and most people don't have enough), you'll be glad you got it. Link to comment Share on other sites More sharing options...
Carmoney Posted November 20, 2008 Share Posted November 20, 2008 I too have a million dollar umbrella, but I have yet to get my agent to answer the question of whether that covers me for some sort of CCW related incident. You'll need to read your policy to figure out where you stand. If the policy language is hard to translate, it might be worth an hour's consultation with an attorney in your state who is informed about CCW matters and (more importantly) who is experienced in insurance policy coverage interpretation and litigation. Here's the short answer--if somebody (or somebody's estate) sues you for shooting him, whether or not your insurance company will afford you a defense (and perhaps indemnification in the event you lose the case) will probably depend not so much on the facts of the incident, but more on how the plaintiff's lawyer pleads the case in the petition/summons. Smart plaintiff's attorneys know how to plead the case into standard liability coverage--most of the time, they want to have insurance coverage in place because they have a better chance of settling and collecting. When in doubt, most insurers will at least provide a legal defense (which often is the biggest issue anyway) under a reservation of rights letter while they try to sort out the coverage. Also, keep in mind that policy language which is deemed ambiguous is going to be construed in favor of the insured, so as long as a legitimate coverage question remains, you're probably going to be competently defended. And most of the time, you will be much better off with an experienced insurance defense lawyer selected by your carrier than some ham 'n' eggs small-timer you happen to know from the poker room or the diner. Link to comment Share on other sites More sharing options...
DonT Posted November 20, 2008 Share Posted November 20, 2008 Merlin, please pardon me for butting in with another question but, Would one get a separate umbrella policy and then also carry a minimum auto liability as required by their state? Link to comment Share on other sites More sharing options...
Merlin Orr Posted November 20, 2008 Author Share Posted November 20, 2008 (edited) Excellent info here.... I am really rethinking my coverage package. The uninsured motorist is an huge problem here. Add the local pastime/culture of heavy beer drinking and the machismo driving style of young males...... The thought about having the high UM/UIM limits really "fits" me as I am naked of any health insurance or benefits. Would one get a separate umbrella policy and then also carry a minimum auto liability as required by their state? Good question...? Edited November 20, 2008 by Merlin Orr Link to comment Share on other sites More sharing options...
Nik Habicht Posted November 20, 2008 Share Posted November 20, 2008 Excellent info here.... I am really rethinking my coverage package. The uninsured motorist is an huge problem here. Add the local pastime/culture of heavy beer drinking and the machismo driving style of young males...... The thought about having the high UM/UIM limits really "fits" me as I am naked of any health insurance or benefits.Would one get a separate umbrella policy and then also carry a minimum auto liability as required by their state? Good question...? Merlin, not even catastrophic inpatient only insurance? How about long term care insurance? I'm loath to tell anyone how to live their life --- but medical costs aren't going down. Some version of health insurance --- at least to cover major stuff is essential, IMHO..... Link to comment Share on other sites More sharing options...
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