or is it a waste of money?

If I cream a cyclist riding around Chapel Hill at night because he was riding around on a bike with no lights, is this what the Umbrella policy is for?

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Ben
1987 190d 2.5Turbo

A Personal Umbrella Policy (PUP) is typically a supplemental liability insurance policy that provides coverage against claims arising from negligence. Based on a homeowner's policy, it covers acts by members of the household. Typical policy limits start at $1M and annual premiums vary.

It truly depends on your risk tolerance and the realistic exposure to a claim. If you or your family's lifestyle or environment exposes you to the risk, then a PUP may be a way of getting better sleep at night.

Umbrellas are cheap, why insure one ??


Actually you Auto insurance would cover this, within it's limits, then the Umbrella policy kicks in.

Consider it an "Excess policy".

There are limts on what is covered.

Agree with MTI regarding risk tolerance.

It's unfortunate that you would be liable (at all) in this situation, but thats our court system. There might be a reduction in any award for comparitive negligence, but that depends on the state etc, but you would still get dinged probably.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

I live in a college town where idiotic college kids ride their bicycles at night with no lights (just reflectors). I'm sure they are required (to have lights) but no one enforces the rule.

I think getting this insurance is a good idea.

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Ben
1987 190d 2.5Turbo

Umbrella coverage is inexpensive. in the event someone were to sue you for more $$$ than either your homeowners or auto insurance covers, the judgement would land on you. which means they can garnish your wages, seize cars, your wife (just kidding), etc etc.

so.....in light of the fact that we live in a lawsuit happy country, it isn't a bad idea. personally, I think the answer is to take all of the lawyers out to the middle of the pacific ocean and knock a hole in the bottom of the boat....but that's just my opinion.

If you have assets, it's certainly worth having.

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With best regards

Al

Bingo; I've amassed a little bit of assets so I have a $3m umbrella policy. Otherwise, don't bother. It's just an insurance policy on your insurance policies, but it's quite cheap.

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- Brian


1989 500SEL Euro
1966 250SE Cabriolet
1958 BMW Isetta 600

i have a 1 million umbrella policy. I think its around $700 a year.

In my case, i had to have my home and cars insured through the same carrier, then the umbrella added to both policies.

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1959 Gravely LI, 1963 Gravely L8, 1973 Gravely C12
1982 380SL
1978 450 SEL 6.9 euro restoration at 63% and climbing
1987 300 D
2005 CDI European Delivery
2006 CDI Handed down to daughter
2007 GL CDI. Wifes

Lawyer takes 1/3 of your award. 1/3 or even 1/2 of nothing is nothing. If they jury didn't simply hand out money because they want to side with the "little guy" and they assume that somebody else will cover it, these things will not take place. Don't blame the lawyer. Blame the 12 morons on the jury that set the presidence. After all, with the presidence, now I can tell you "Previous juries gave 10 million. You waste money fighting me in court, I'll settle for 8 million and nobody has to go to court.

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01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

That's a generalization that is often valid, but not always. Many assets can't be touched - state laws and the type of asset make a huge difference in exposure.

Two such common examples - retirement funds (pensions, IRA's, etc.) and primary residences. Many states protect one or both from virtually any judgement short of tax liens.

There's a reason OJ lives in Florida...

Random Brain Dropping Alert . . .

What might be the result of abolishing insurance?

Would the risk of loss without a "safety net" make us better drivers . . . better homeowners, in other words, less likely to be negligent?

Probably would make us more cautious. Just like the safety net of Unemployment. Seems like I heard a blurb on one of the news channels that they found a lot of people gained employment just before employment ran out. HOWEVER, as careful as you might be, something can happen. In this case, you might be taking out someone else with you and CANNOT pay.

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01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

I guess the award number would be higher if you hit him with a benz rather than a yugo

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Ben
1987 190d 2.5Turbo

Umbrellas are so cheap. Why would you want to waste money insuring those?

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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

this is my umbrella

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Ben
1987 190d 2.5Turbo