Do I need an "umbrella" insurance policy?

[George K]

I sort of understood it when I was working. Someone falls on my sidewalk and they sue my ass.

However, now that I'm retired, and live in a condo, is this an expense I really need? My gut says no.

[Copper]

I got it because 1 umbrella cost less than 1 for the house and 1 for my car and 1 for my wife's car and 1 for the pool.

The 1 umbrella liability policy covers all liability.

[Copper]

Although, the pool is gone now and the cars' mileage is way down.

Maybe I should look into it.

I had 1.5 million policy to cover pool liability. I asked the insurance guy what would be my liability if someone was hurt in the pool.

He said the sky is the limit. But, if you have a decent liability policy they will probably just take that and avoid further hassle.

It's not like you have a million in the bank and buy a million dollar policy to protect it. A greedy lawyer, with a good case, might go after both.

[MainerMikeBrown]

My parents live next to a lake. And one reason they won't let any of the children who live in their neighborhood go swimming on their property is because if someone gets hurt, my parents could get sued. I don't blame my parents.

America is a sue-happy nation these days, unfortunately.

[George K]

When we had the Cheddarshack I was always worried about the pool, particularly when we were away, sometimes for weeks at at time.

That's all gone now.

[Loki]

How much did it cost you?

[MainerMikeBrown]

It seems like you have to have insurance for everything nowadays.

[George K]

@Loki said in Do I need an "umbrella" insurance policy?:

How much did it cost you?

About 10 pizzas $350 a year.

[Loki]

@George-K said in Do I need an "umbrella" insurance policy?:

@Loki said in Do I need an "umbrella" insurance policy?:

How much did it cost you?

About 10 pizzas $350 a year.

I missed the pool part on first pass when I thought I had a better rate than you. I don’t mind spending for some piece of mind. I’m not an insurance type guy and if I thought about it harder I’d probably dump it but I’m used to it now.

I agree that one doesn’t attempt to cover their entire worth.

[Mik]

I have one. It saved me enough on car insurance that it paid for itself.

[Jolly]

Knew a guy that built his own home. Literally, from sawing down the trees until banging in the last nail. He didn't have homeowners, just one liability policy to cover pretty much everything. He said it was cheaper.

[mark]

Does an umbrella policy cover auto? What about having younger drivers on the policy? How does that work?

[Aqua Letifer]

Okay, party at George's place! Be sure to bust your ass on the kitchen floor; payday, bitches!

[Copper]

@mark said in Do I need an "umbrella" insurance policy?:

Does an umbrella policy cover auto? What about having younger drivers on the policy? How does that work?

Auto insurance has several components, including collision, comprehensive, uninsured motorist, medical and personal injury.

I think the term umbrella is usually used in reference to just a Liability policy that might cover any of your liability from any source.

Many people have multiple insurance policies each containing liability coverage. So if you have a liability policy on each car and your house. These may be redundant policies. If you replace all your liability policies with a single Umbrella Liability policy you might save money.

But this doesn't address collision, medical and the others.

[jon-nyc]

@mark said in Do I need an "umbrella" insurance policy?:

Does an umbrella policy cover auto? What about having younger drivers on the policy? How does that work?

The umbrella policy provider will typically tell you you need to have a certain minimum liability coverage on the auto policy, then they cover the difference between that amount and your cap.

[Mik]

That's how mine works. It protects my assets in this age of deep pocket theory.