- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Umbrella Insurance
Posted on 3/30/21 at 3:50 pm to Chad504boy
Posted on 3/30/21 at 3:50 pm to Chad504boy
0
Posted on 3/30/21 at 4:34 pm to DRTiger67
Get the coverage of your assets total value
Posted on 3/30/21 at 4:39 pm to TDsngumbo
The IRA is not subject to seizure of garnishment. The guy mortgages his house to the hilt before judgment so there is not equity left. He then filed bankruptcy and the judgment is discharged.
I think you and I are ultimately on the same page as far as saying you should have an umbrella policy, I'm just saying without substantial assets, most folks are judgment proof.
I think you and I are ultimately on the same page as far as saying you should have an umbrella policy, I'm just saying without substantial assets, most folks are judgment proof.
Posted on 3/30/21 at 4:59 pm to TDsngumbo
quote:
That's most cases, though. Imagine for a second that you glance down at your phone and you then find yourself smashing into the back of a school buss or causing a chain reaction in traffic, injuring 10-30 other people. Guess what - now you have multiple people with minor/moderate injuries that will add up real fast. Without an umbrella, your underlying liability on your vehicle (or boat, 4-wheeler, golf cart - if you even have liability coverage on that, etc.) will be eaten up real fast, leaving the victims with no coverage at all to pay for their bills. Although not likely, it is certainly possible that you would find yourself being sued for personal assets to make up the difference.
I would imagine most states have hands free cell laws in-place these days, one might find they have no coverage nor legal protection in this scenario. Due to ERISA employer 401k/403b and similar tend to have the strongest judgement/creditor protection. Some states may offer protection up to a cap on Roth's/IRAs and above that can be garnished, etc. Taxable accounts are fair game. If you break the law and get sued you are SOL on your supposed policy protection. I'm sure insurance companies make significant profit on umbrella policies. We paid $415 this year for $3.5M + 500k existing on vehicles and left a large 403b and a 401k with different prior employers due to higher expected legal protections. Louisiana probably has high cost due to it's litigious climate. If you have $500k in taxable or more and it costs less than $200 annually get a million+ I would do it. If I had teen through college drivers I would get one.
Posted on 3/30/21 at 5:36 pm to jfw3535
quote:
The IRA is not subject to seizure of garnishment
Correct. Retirement is not subject to seizure or lien. BUT, retirements are required by law to be liquidated(RMD at 70). And at that time, they are subject to a judge's decision.
quote:
The guy mortgages his house to the hilt before judgment so there is not equity left. He then filed bankruptcy and the judgment is discharged.
In Georgia, it doesnt matter if you have equity or not, the judgment falls on real estate like a mortgage (you cant refinance or sell the home without paying off the judgment plus interest which is about 6% right now and doubles the payoff every 12 years).
You can file ch 7 bankruptcy (walk way from your home) and that can alleviate the debt. BUT a bankruptcy does not remove liens at a courthouse. You still have to satisfy the lien to be lien free (purchase your next home). So you are stuck paying off the lien anyway.
Edit to add that one question on a refinance is if you have any pending lawsuits... it could prevent mortgaging a home to the hilt.
This post was edited on 3/30/21 at 5:38 pm
Posted on 3/30/21 at 5:39 pm to tirebiter
quote:
one might find they have no coverage nor legal protection in this scenario
On a car insurance policy? No... they cover these accidents too
quote:
If you break the law and get sued you are SOL on your supposed policy protection
You are conflating "breaking a law" and "committing a crime". They are not the same thing.
This post was edited on 3/30/21 at 5:41 pm
Posted on 3/30/21 at 5:41 pm to DRTiger67
So is getting a umbrella policy just helping give the lawyers a better reason to sue for more once they realize you have it? Is there a way lawyers find out about these policies? I have a million dollar policy for the peace of mind
Posted on 3/30/21 at 5:48 pm to tigersfan1989
quote:
So is getting a umbrella policy just helping give the lawyers a better reason to sue for more once they realize you have it? Is there a way lawyers find out about these policies? I have a million dollar policy for the peace of mind
Yes and no.
They like it because it is where the money comes.
But the reality is that you can not tell someone not to sue you. Be prepared.
Posted on 3/30/21 at 5:53 pm to meansonny
[img]You can file ch 7 bankruptcy (walk way from your home) and that can alleviate the debt. BUT a bankruptcy does not remove liens at a courthouse. You still have to satisfy the lien to be lien free (purchase your next home). So you are stuck paying off the lien anyway.[/img]
Not true. The bankruptcy discharges the debt. The lien secures the debt. If the debt is gone, the lien goes away. You may have to go through a few steps to have the lien discharged b/c of the bankruptcy, but it is most certainly not payable once discharged in bankruptcy.
Not true. The bankruptcy discharges the debt. The lien secures the debt. If the debt is gone, the lien goes away. You may have to go through a few steps to have the lien discharged b/c of the bankruptcy, but it is most certainly not payable once discharged in bankruptcy.
Posted on 3/30/21 at 5:58 pm to tirebiter
Every time there’s a car accident, the at fault party broke the law via negligence (speeding, distraction, etc). That’s why a lawsuit is possible - someone broke the law and resulted in someone being injured.
This post was edited on 3/30/21 at 5:59 pm
Posted on 3/30/21 at 6:03 pm to DRTiger67
If you have substantial assets to protect it is a necessity.
Posted on 3/30/21 at 6:09 pm to geauxpurple
To add to this, if you have teenage drivers some of these premium amounts thrown around are not accurate lol.
Posted on 3/30/21 at 6:24 pm to jfw3535
quote:Years ago ch. 7 used to be the answer to things such as excess judgments from things such as car accidents, but it is not so easy anymore. With the means testing rules in effect, it is not so easy to qualify to file ch. 7.
You can file ch 7 bankruptcy
Regarding the liens - Liens on real estate can give the creditor protection even in bankruptcy cases if there is enough equity in the property. The bankruptcy discharges the debt, but one of the things the debtor needs to show in order to get the lien erased is that there was not enough equity in the property to satisfy the lien. At least that has been my experience in dealing with a few cases like this.
Posted on 3/30/21 at 6:38 pm to DRTiger67
I have one, with an UM rider (why insure everyone else and not yourself?)
With that being said , to get an umbrella policy you have to have max liability coverage already, I doubt few people who have max coverage have been on the hook for any additional.... but I don’t want to be one of the few, couple hundred dollars for a policy helps me sleep better
With that being said , to get an umbrella policy you have to have max liability coverage already, I doubt few people who have max coverage have been on the hook for any additional.... but I don’t want to be one of the few, couple hundred dollars for a policy helps me sleep better
Posted on 3/30/21 at 6:56 pm to DRTiger67
We have it with State Farm. Full UM. $1M and it’s $93/mo in Lake Charles.
Posted on 3/30/21 at 7:32 pm to geauxpurple
quote:
The bankruptcy discharges the debt, but one of the things the debtor needs to show in order to get the lien erased is that there was not enough equity in the property to satisfy the lien. At least that has been my experience in dealing with a few cases like this.
Not trying to be argumentative and I'm certainly no bankruptcy expert, but that doesn't sound right at all. The lien secures the debt, so if the debt goes away, the lien goes away.
If I give you a promissory note and place a mortgage on my property to secure the indebtedness owed by the promissory note, a discharge of the debt evidenced by the note would result in a discharge of the mortgage. The lien of the mortgage is not longer enforceable once the underlying debt (the note) is discharged.
Posted on 3/30/21 at 8:02 pm to jfw3535
No. The mortgage holder is protected in bankruptcy proceedings to the extent that the promissory note is secured by equity in the property. An excess judgment can be discharged, but if a bankrupt's property is encumbered by mortgages, the bankruptcy trustee will disclaim the property from the bankruptcy estate and this will free it up for the creditor to forclose on it. That is why banks make sure they have a good mortgage on property. This protects them even if the customer files bankruptcy.
Posted on 3/31/21 at 6:58 am to TDsngumbo
quote:
except for social security (if I recall correctly).
I believe IRAs and Qualified pensions are also exempt. That is how O.J. Simpson still lives comfortably on a golf course. This is due to federal ERISA law (inalienability provision) and not to state bankruptcy laws.
Florida USED TO give you an unlimited housing exemption in bankruptcy. Look up the case of Bowie Kuhn, the former baseball commissioner. He basically swindled many people out of millions and then bought a house in Florida with the proceeds and got to keep it all. As I recall, because of Bowie Kuhn, the Feds changed its laws but I believe Florida is still one of the most bankruptcy-friendly states in the country.
This post was edited on 3/31/21 at 8:17 am
Posted on 3/31/21 at 8:34 am to achenator
quote:
To add to this, if you have teenage drivers some of these premium amounts thrown around are not accurate lol.
I just did some insurance shopping in the last 6 months. 2 young drivers, w/ an umbrella and I'm around $515 a month for 4 cars, 4 drivers. Also have a Hagerty's policy at $350 a year on another vehicle.
Posted on 3/31/21 at 8:54 am to slacker130
quote:
I just did some insurance shopping in the last 6 months. 2 young drivers, w/ an umbrella and I'm around $515 a month for 4 cars, 4 drivers.
Do you live in Louisiana? Granted they are 4 nice cars with full coverage but I'm about $10k a year with the same drivers. No tickets or accidents and was able to get a CHEAP umbrella through work, with my auto company (Allstate) I was paying about $2k a year for $1mm.
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News