[Kileen]

If you have an umbrella policy, have you increased it as your net worth increased? When we got our $1M policy, it seemed like plenty but now that our net worth is substantially higher than that, I’m wondering if we should increase it.

I’m curious to know how others approach umbrella policies as their financial situation evolves. Have you adjusted your coverage over time, or do you stick to a fixed amount regardless of your net worth?

I’d love to hear your experiences and thoughts!

TIA!

[Grant]

Yes. Side note that I just discovered – while it is cheap in relative terms to value, our cost went up around 50% when we added a 16yo boy to our car insurance recently.

I mention ‘boy’ because we didn’t notice anything substantial when our now 20yo daughter was added at 17.

Also, as you consider net worth that you want to protect, remember that assets in 401(k) plans are typically protected from most liabilities. IRA protections are very much state dependent.

[Kelly]

We recently looked at this too. Most of our money is in qualified plans (401(k) and pension). So, to be clear, you do NOT need to insure that portion, correct?

[Bill]

Yes. Obviously yes. If you have $10 million, insure $10 million. Each additional million is cheaper than the last

[Author]

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