Is it recommended to have as much umbrella liability insurance as all of one assets including "retirement" accounts? That word is quoted is because I believe that official 401Ks and IRA are protected in many states, but after-tax accounts are not protected.
I've heard this rule, but it's never made any sense to me. You should have umbrella coverage that exceeds any likely jury award. A couple of exceptions: if you have no assets, you probably don't need to insure them. If you're very wealthy, you can self insure.
But umbrella coverage is ridiculously cheap. As someone pointed out, they will provide the defense against a suit as well. They will work much harder if they have $2 million at risk than $100,000.
-- Doug
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