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Umbrella policy

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  •  WorkforFIRE 
    Participant
    Status: Physician
    Posts: 20
    Joined: 11/22/2018

    We don’t own a home. But my friend was talking about this yesterday.
    Is this something that all of us should have?? If so, what limits?

    #179004 Reply
     jhwkr542 
    Participant
    Status: Physician
    Posts: 850
    Joined: 02/15/2016

    Most likely for your car at this point.  Are you an attending?  How much in unprotected assets?  The scenario is you hit someone with your car and they sue your pants off because you’re a doctor.  A $1MM umbrella policy is probably good enough, but I don’t know your whole financial situation.  It’ll be really cheap.

    #179016 Reply
     Tim 
    Participant
    Status: Accountant
    Posts: 809
    Joined: 09/18/2018

    How to calculate how much umbrella I need?

    You buying asset protection. Usually purchased on top of homeowners, renters, or auto insurance. Most likely assets you own.

    #179018 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 1192
    Joined: 01/03/2017

    As a physician you should have umbrella insurance. Start with a million and then you can always change as you get further in your career and have more assets. It’s cheap.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #179021 Reply
     bean1970 
    Participant
    Status: Physician
    Posts: 350
    Joined: 07/12/2017

    do you drive? that is your biggest liability. and you should stack an umbrella on top of your auto to cover.

    #179022 Reply
     WorkforFIRE 
    Participant
    Status: Physician
    Posts: 20
    Joined: 11/22/2018

    Gotcha. Thanks. Will purchase a policy today. Appreciate all the feedback.

    #179040 Reply
     SLC OB 
    Participant
    Status: Physician
    Posts: 174
    Joined: 06/23/2018

    Yep, we had $1M policy until recently… I think it was like $350/year. Went up to $5M limit recently, now about $750/year.

    It’s not like Life or disability insurance where you have to get the cheap rates when you are young… it’s not hard or expensive to increase the amount as you age/increase your net worth.

    Is $5M too much? Maybe… but it was worth piece of mind for only $400/year more. Also, will have teenage drivers soon in a snowy area (i.e. high risk of accidents) along with potential of falling icicles from our house, a rental house, etc….

    #179069 Reply
    Liked by Seabass
    ReFinDoc ReFinDoc 
    Participant
    Status: Physician
    Posts: 127
    Joined: 01/09/2016

    Remember to get under-insured and uninsured coverage with your Umbrella. That way you can collect from your insurance company rather than trying to sue the deadbeat that hit you.

    #180110 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6341
    Joined: 01/09/2016
    Also, will have teenage drivers soon

    Click to expand…

    Multiplies your risk factor by 10.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #180499 Reply
    Liked by SLC OB
     SLC OB 
    Participant
    Status: Physician
    Posts: 174
    Joined: 06/23/2018
    Multiplies your risk factor by 10.

    Click to expand…

    Totally! Hence the increase to a $5M policy!

    #180644 Reply
    Liked by jfoxcpacfp

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