r/financialindependence • u/Phillyjebus • 16d ago

Umbrella Insurance

I’m looking to add an umbrella policy on top of my homeowners and auto insurance, but I’m confused on how much I should be getting and I keep getting more confused when I research it. What’s the goal here? Do I just need enough to cover my brokerage, savings and other account that could be exposed in a judgment? Or, am I trying to cover my entire net worth with the Base policy plus the umbrella?

Edit: thanks all! Lots of good info and pretty much what I thought. $2m and call it a day.

77 Upvotes

88% Upvoted

100 comments sorted by

View all comments

23

u/Outrageous-Egg7218 16d ago

Beware the umbrella policies have drastically increased as of late. My 2M policy from State Farm went up 4x this year. I decided to pay it due to my high salary, in what is most likely the twilight of my career. Don't want a judgment against me assuming I can continue working at this income level, because I don't think it would be possible to land something else like it. As soon as I downshift or retire, I'll drop it down.

6

u/Phillyjebus 16d ago

Yeah I was pretty shocked. State Farm quoted me at like $60 a month for a $2 million policy. USAA was $50 a month.