Umbrella Policy Advice

I have a 1 mil umbrella. The cost is roughly 40/month, but you have to raise your car insurance limits to 100/300. Total monthly payment for me and my wife's vehicles plus umbrella is about 166. Metlife. Really not much considering

i have a million dollar policy. same company that insures all my rentals.

Make sure you actually have wealth that you are protecting for the policy to make sense. If you don't have wealth for them to go after, then the policy just gives a lawyer an excuse to make you a target unnecessarily. It's a bit twisted / perverse, but the incentives work out that way.

My umbrella policy was super cheap...maybe $150 a year.

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Sounds good, looks like 1 mil is a good standard number. Thanks for the advice.

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I got quoted a policy of about 240/yr for 1 mil by USAA. I feel like that isn't too bad at all, at least for the peace of mind.

I'm not exactly wealthy, but it would help keep me from losing my house should I be responsible for some six car pileup on 85, etc. that exceeds my current liability coverage. Plus whatever risk I have sitting on a municipal authority board.

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State Farm requires 100/500 before the umbrella will kick in.

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SF requires 250/500 on Auto and HO can remain at 100

$1MM umbrella - $480yr with no youthful drivers

I disagree. There is also wage garnishment to consider. Most adults make over one million dollars in their lifetime.

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Plus whatever risk I have sitting on a municipal authority board.

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Check with your agent on whether your HO and umbrella would cover that.

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Personal umbrella insurance typically doesn't cover other business-related liabilities such as a malpractice lawsuit, or losses in connection with your paid position as an officer or member of a governing board of a for-profit organization.

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Could be similar exclusions for government positions. It's worth checking if this is a major reason to get the umbrella.
Allstate: What is Generally Not Covered By a Personal Umbrella Policy?

Most municipalities provide a defense and indemnity to police, councilmen, zoning officials, etc. if they are sued for acts taken in the course of their duties. Otherwise, fewer smart people would be willing to take the jobs.

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Make sure you actually have wealth that you are protecting for the policy to make sense. If you don't have wealth for them to go after, then the policy just gives a lawyer an excuse to make you a target unnecessarily. It's a bit twisted / perverse, but the incentives work out that way.

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This is horrible advice considering lawyers also target future earnings if they can get away with it. If you have 0 in the bank and have any solid future earnings potential and you hit someone with your car, you can bet your arse they will garnish your future wages to pay that person off for their damages. There’s a lady I work with who is not wealthy at all that could not retire when she wanted to because she did not have an umbrella policy and she was at fault in an accident where the dude lawyered up. So they garnished her wages and it’s forced her to work longer than she wanted.

The real answer to this question is “buy what you can afford.” Just because someone else has 1 mil doesn’t mean that is smart for you. It’s a relatively cheap coverage all things considered and it will really help you sleep at night knowing all the craziness that is out there in our world. If you have kids who are close to driving age or at driving age you really need some limits on there.