May 15, 2022, 07:40 PM
Pipe SmokerUmbrella insurance…when is it necessary?
I have a sizeable umbrella policy with Farmers. I have my auto and home policies with Farmers too. Enough coverage so that if I’m ever sued Farmers will find a damned sharp lawyer to defend me.
May 15, 2022, 07:58 PM
LoboGunLeatherquote:
Originally posted by hrcjon:
Its necessary if you own anything. YOU are really buying someone to defend you. Its not the case you lose that matters so much but the defense of the case in which you are right. In today's world the minimum anyone should have IMO is in the 2-3M range and it should go up from there if your assets are meaningful. I would never have less than my assets. I would have more than my assets if I was in the low part of the insurable range and its really a PIA to start your life completely over. This insurance is as cheap as you can buy and you should get coverage.
Good response! The object of the exercise is less about having a big dollar liability umbrella and much more about providing your insurance company with an incentive to actively defend against claims.
Relatively few claims are taken to trial. Many claims are settled for "nuisance value", an amount the insurance company believes to be lower than what they might spend in legal fees and defense costs.
Yes, I carry good liability limits on my auto and homeowner policies, and I have a liability umbrella policy that is about what our net worth amounts to.