Umbrella Liability Policy. Is it worth it?

[Chris T.]

I'm reading Dave Van Horn's article

Maybe You Shouldn’t Start an Entity. Consider 4 Alternative Asset Protection Strategies Instead.

And it got me curious. Almost everyone suggest getting an umbrella policy since it's relatively inexpensive. I agree. But is it worth it? And will the insurance company defend their clients? (assuming it's out of the client's control)

And I read somewhere that if you have over $1 million policy, your insurance company would have attorney representation on your behalf?

Are we all so brainwashed that in this litigious society, we need to get all sorts of insurance, just for piece of mind? 

Do you KNOW of anyone that has been through litigation where they had to rely on the umbrella policy? 

[Frank Chin]

My insurance agent had my home, auto, and various landlord policies carry a maximum of $500,000 liability, and anything over that is carried in the umbrella.

I originally carried $1,000,000 when I started, and increased it to $3,000,000. Premiums was originally under $1,000, and few million more only ran me another $200 to $300.

Totally worth it. Some scammer had a slip and fall, got a lawyer after me. I told him don't bother me, to go after my insurance. The lawyer dropped the client and case after 6 months because it was too much trouble.  The scammer gave up on me after he pleaded with me to give him a few bucks to go away, and I said NO.