Author Topic: How much/what would you insure?  (Read 2854 times)

Roland of Gilead

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How much/what would you insure?
« on: April 27, 2014, 08:09:43 AM »
When we sell our house and travel the USA, we will at least need basic insurance on some items.

Other than health insurance, what would you insure these items for (liability or full coverage and what deductible?)

Truck:  2006 Isuzu NRR, value $15,000
Camper:  Custom built flatbed camper, value $50,000 (have to get appraised since no comparison)
Motorcycles: Both 2011 Yamaha WR250R dual sport, value $3500 each
Boat:  2005 17 foot Montgomery sailboat, value $11,000, trailer $2000

Right now I have full coverage on the truck, motorcycles, boat and trailer.  The camper is still being built in our garage.  The camper is almost irreplaceable as it would cost $100,000+ to have someone else build it to our specs.

I want to trim our budget though and I am thinking about going mostly liability on everything but the truck camper.  I am also worried about theft and there is some concern that we may want a umbrella policy to protect our investment nest egg that is not protected already in 401K (untouchable in most settlements).

What/how much would you insure the above?  Our net worth will probably be around $1,400,000

Thegoblinchief

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Re: How much/what would you insure
« Reply #1 on: April 27, 2014, 08:27:50 AM »
I'd personally insure the camper at the very least. No idea what kind of insurance policy, though. Is it a house? A vehicle? An RV? Finding a good independent agent that reps a few companies will probably help, even if the policies might be more expensive.

Storm damage would be my biggest concern.

I wouldn't bother insuring the cycles for anything except liability. The truck and the boat are edge cases.

Umbrella policies are stupid cheap. Wouldn't hurt to buy one, but what kind of liability would you really be worried about incurring?

Roland of Gilead

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Re: How much/what would you insure
« Reply #2 on: April 27, 2014, 08:59:37 AM »

Umbrella policies are stupid cheap. Wouldn't hurt to buy one, but what kind of liability would you really be worried about incurring?

Most auto policies only go up to about $300,000 in liability coverage?  I am just concerned if we are ever at fault someone could sue us for a lot more than that.

Daleth

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Re: How much/what would you insure
« Reply #3 on: April 27, 2014, 09:23:08 AM »

Umbrella policies are stupid cheap. Wouldn't hurt to buy one, but what kind of liability would you really be worried about incurring?

Most auto policies only go up to about $300,000 in liability coverage?  I am just concerned if we are ever at fault someone could sue us for a lot more than that.

Umbrella policies go higher than that, and you can also call around because there are auto policies that go higher. Unless it's obvious or easy to figure out that you're rich, people don't often sue beyond the insurance. The vast majority of Americans with $300k or $500k etc. liability insurance have a lot more liability insurance than assets.

CarDude

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Re: How much/what would you insure
« Reply #4 on: April 27, 2014, 09:29:08 AM »

Umbrella policies are stupid cheap. Wouldn't hurt to buy one, but what kind of liability would you really be worried about incurring?

Most auto policies only go up to about $300,000 in liability coverage?  I am just concerned if we are ever at fault someone could sue us for a lot more than that.

Umbrella policies go higher than that, and you can also call around because there are auto policies that go higher. Unless it's obvious or easy to figure out that you're rich, people don't often sue beyond the insurance. The vast majority of Americans with $300k or $500k etc. liability insurance have a lot more liability insurance than assets.

Another reason not to go around telling everyone you're retired/FE/etc.

brewer12345

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Re: How much/what would you insure?
« Reply #5 on: April 27, 2014, 09:36:03 AM »
Insure the camper if you can find someone willing to do so at a reasonable cost.  Everything else is replaceable at a cost you can bear.  Get an umbrella policy.  I would choose at least a $2 million limit.

Nords

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Re: How much/what would you insure?
« Reply #6 on: April 27, 2014, 02:16:03 PM »
I want to trim our budget though and I am thinking about going mostly liability on everything but the truck camper.  I am also worried about theft and there is some concern that we may want a umbrella policy to protect our investment nest egg that is not protected already in 401K (untouchable in most settlements).
We carry liability and UM/UIM on our vehicles, but we drop collision/comprehensive as soon as the vehicle turns five years old.  Sometimes even sooner. 

I go back & forth over canceling our UM/UIM coverage, but (1) it's cheap peace of mind and (2) if we end up with lifetime disability then the extra cash will help pay for home modifications and personal assistance... or long-term care.

I'm not sure what type of theft you're worried about, but how much would you pay to replace those objects from Craigslist?  For example, I'm not questioning the value of the motorcycle, only asking how much money you'd pay to get another motorcycle of whatever make/model/year.  If you'd pay $3500 or less for a replacement then maybe it makes more sense to cancel the comprehensive coverage and set aside your insurance savings in a vehicle replacement fund.  If you'd only pay $2500-$3000 for a replacement then I'd drop the comprehensive coverage and just add a replacement motorcycle to the "every 5-10 years" entertainment fund.

Do you feel that your camper is attractive to a thief?  It may be the world's best camper to you-- and rightfully so-- but to a thief it's a white elephant that would never be worth anything to a chop shop.  I don't know whether sailboats are theft magnets, either.  Maybe it's only worth comprehensive insurance, and really just fire insurance.  You'd probably repair collision damage on your own, and probably for barely more than the cost of the materials.  Of course you'd want to be insured for sailboat flooding/sinking in addition to fires.

We carry umbrella liability to cover our gross worth, not our net worth.  The plaintiffs (and the judge) don't care how much mortgage debt we're paying.