Too much umbrella insurance?

[u/dereku1967]

I am not an attorney, but I work with one in a large company. We were talking a few weeks ago about umbrella insurance. She said she only carries $1M, because the first thing the opposing attorney will ask for is for the total insurance amount available. She believes a higher Insurance value makes you more of a target. I’m currently insured for $5M, and if there’s any logic behind this, maybe I should drop mine down to just $1M.

For context, I’m in my mid 50s, but have one son who will be driving on his own in about a month, and a daughter who is still only 15 so I’m just now approaching my nervous years.

[u/MommotDe]

How much do people pay for this kind of coverage? I only just learned this existed this year, and also only reached the point in life where I have some assets, but I know nothing about umbrella insurance and don’t have any.

[u/mezolithico → u/MommotDe]

Its cheap but you have to have all your insurance under the same company typically. Ours is like $30/month for $3 mil

[u/UberBostonDriver → u/mezolithico]

It also highly depends in what is under the umbrella. For example rates will be higher if you own race cars, jet skis, boats, rental properties or have teen drivers etc. They did the math. But few hundreds to $2000/yr for a $3M policy is a good estimate.