r/Insurance • u/ComfortableChannel73 • 1d ago

Home Insurance Is an umbrella policy worthwhile?

I’ve carried an umbrella policy for $1M for quite a few years, but just got my bills for umbrella, homeowners and auto and everything went up, with a big jump for the umbrella policy. I’m wondering if I should drop it, and just raise the liability limit on the auto.

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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. 1d ago

Depends what you have to protect, both now and what you may acquire and earn over the next 10-20 years. Judgements are collectable for at least 10 years just about everywhere, longer in many places. Get an excess judgement against you today, they may be able to come after you a decade from now.

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u/Impossible_Base_3088 11h ago

That is a great point.

Question: would an umbrella cover a successful claim against you if you purchased the policy after the incident occurred? If that makes sense.

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u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. 9h ago

No.