[mccannable]

Wouldn't having a high value policy increase your chances of being sued?

[kscarrol]

Originally Posted by mccannable

Wouldn't having a high value policy increase your chances of being sued?

Nope, having a high net worth that the lawyers can go after will increase your chances of being sued. That's why you get the umbrella to cover your net worth.

When you are being sued, the lawyers will get access to your financial documents to determine how much they should sue for. They discover you are worth $1.5 million, guess how much they are going to sue for? Your umbrella needs to cover that.

[Mr Tonka]

Originally Posted by mccannable

Wouldn't having a high value policy increase your chances of being sued?

Originally Posted by kscarrol

Nope, having a high net worth that the lawyers can go after will increase your chances of being sued. That's why you get the umbrella to cover your net worth.

When you are being sued, the lawyers will get access to your financial documents to determine how much they should sue for. They discover you are worth $1.5 million, guess how much they are going to sue for? Your umbrella needs to cover that.

kscarrol is correct. Your chances of being sued depend on your financial value, not your policy value. Your policy is there to protect your financial value.

Knock on wood, i haven't been sued so someone can correct me if i'm wrong, but if sued I believe once your INS is involved, they are going to decide if they should go to litigation or settle. This means their legal team handles the fight.

[mccannable]

Originally Posted by kscarrol

Nope, having a high net worth that the lawyers can go after will increase your chances of being sued. That's why you get the umbrella to cover your net worth.

When you are being sued, the lawyers will get access to your financial documents to determine how much they should sue for. They discover you are worth $1.5 million, guess how much they are going to sue for? Your umbrella needs to cover that.

But don't they also check your insurance coverage limits and decide if your worst going after?

[kscarrol]

Originally Posted by mccannable

But don't they also check your insurance coverage limits and decide if your worst going after?

Yes, the plaintiff attorney will likely look at both. Ultimately all they see is a dollar figure to try and get their grubby hands on. As Mr Tonka points out, the insurance company will have to get involved with their legal team and either fight or settle. Unfortunately it has become all to common that the insurance company simply settles as it is usually cheaper than an extended trial where they could possibly lose and face a larger judgement. The lawyers know this and sue for right at the limits of the policy, hoping to get that settlement.

But better the insurance company pay the legal bills to fight/settle protecting their $$'s rather than you paying legal fees to protect your assets...

[manutdas11]

Originally Posted by NemesisX

I'm not going to lie when I first saw the term I thought it was referring to the act of carrying an umbrella with you at all times in case it rains

Same.