Do I need Umbrella insurance?

Question

I have an umbrella insurance policy and I wonder if this is really needed. I do not have animals and I do not have a pool. I already carry life, home owners, health and car insurance. Is the umbrella insurance over kill or truely neccessary?

Answer 1

Well, it depends on what you're worth, and how much you make.

Homeowners and auto policies don't usually let you carry more than a half million of liability.  If the total of your assets - including retirement accounts- plus three years of salary, is more than $500,000, you really need an umbrella.

Plus, umbrella policies - if it's a true umbrella - will cover some claims NOT covered under your homeowners or auto policies.  Those would include things like lawsuits related to your volunteer position in a church group (or scout troop, etc), or an accident on the golf course with you driving a golf cart.

Bottom line - I don't know you, or your financial situation.  But your agent does.  And if they've recommended the umbrella, you probably need it.  That umbrella is only earning him $15 a year in commission, so he sure didn't recommend it for the money.

Answer 2

As much as i know,this is a question with different answers,it is really depend on yourself judgement,some great resource her for reference though.http://carinsurance.expertsupport.info/a...

Answer 3

umbrella policies are CHEAP and since you own a house i would suggest keeping it.  an umbrella covers you above the limits of liability on your other policies.  so if you carry $300,000 liability on your home it will cover anything over that up to the limits on the umbrella (which is usually at least $1,000,000)  same for your auto liability limits.  think of it this way: if you have an auto accident and it involves a couple cars with a driver and passenger in each car and everyone gets hurt and cars are totaled, will your liability limits be enough to pay for everything and everyone?  what if they sue you?  same on your home...if something was to happen and you were held liable are your limits enough to cover everything?  what if they sue?  can you afford to lose your house?  in my opinion ANYONE who owns any type of property (business, home, etc) should have an umbrella in today's "sue happy" world.  I have seen MANY of my clients who were VERY relieved they had one when they needed it.

Answer 4

Absolutely!

Answer 5

If you have any assets (home equity, retirement accounts, savings) you'll want to protect that.  Umbrella protects you if you get sued... even as simple as if you fell asleep at the wheel and caused an accident, or didn't shovel your sidewalk and someone slipped and injured themselves.  If it's not that expensive, I would recommend keeping it.  I a litigious society like ours it may be worth it.