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58 years old, disabled, retired, wife isn’t working. Kids are over 21. Most of my assetts are either in a Roth or Traditional IRA. Other than that, our (mortgaged) home, two cars (paid for), household stuff, and savings / investments of well under $ 100,000. SSA disability and a small pension for income. Almost no debt except mortgage and 1 Parent College loan of under $ 6000.

So do I need a liability policy, or should I run with the liability coverage on homeowners and auto insurance?

1 Thought on Do I need a Personal Liability Insurance policy?
  1. Reply
    August 27, 2012 at 7:44 pm

    In your state, are your retirement savings protected from a lawsuit? You should probably find that out.

    I usually tell people, you need liability limits that are slightly over THREE YEARS income, PLUS 100% of your attachable assets. Which would include the house, in most states (again, you’ll need to ask about homestead laws in your state).

    If you can put $ 500,000 on the homeowners policy, and $ 500,000 on the auto policy, and your house and retirement funds are immune from attachment, you probably don’t need that umbrella/excess liability policy. ESPECIALLY if it’s really an EXCESS policy, and not a true “umbrella” form.

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