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/SpiteFar4935]

I don't think it is common which is why umbrella insurance is not very expensive. But uncommon is not the same as impossible.

[u/uptimefordays → u/SpiteFar4935]

I mean isn’t insurance a game of risk assessment? If you’re getting $3m coverage for $30 a year, like someone else in this thread mentioned, the risk seems remote.

This seems like something unsophisticated people do for asset shielding.

[u/RockAndNoWater → u/uptimefordays]

It was $30/month, not $30/year, and that still seems low, though it depends on a lot of things including location.

[u/uptimefordays → u/RockAndNoWater]

Ah that’s my mistake but still $360 a year for $3m coverage is quite a deal.

[u/Getthepapah → u/uptimefordays]

For me, in my HCOL area with my insurer, Travelers, it’s ~$400 for $1M, ~$775 for $2M, and ~$1K for $3M (annually).

[u/RockAndNoWater → u/uptimefordays]

Yes, I’d take that 🙂

That was close to my cost a few years ago but has gone up quite a bit since then, currently $900/year for just $5m coverage