My son is a fairly high net worth individual. He doesn’t own a house or car. No spouse. He occasionally rents a car while traveling on business. He buys full insurance from the rental company. Does he need an umbrella liability policy?
Posted by AnteaterMajestic1922
5 Comments
Realistically, if I was him, I would yes he has liability coverage through the rental company, but if for some reason, something happens that is beyond the policy limits, they might be able to sue your son as well. The premiums for an umbrella policy are not insane. I have $1 million umbrella and I don’t pay all that much every month.
High net worth without a house? How?
Yes, and not just because of the rental car liability. As a HNW person, he should have a relationship with an insurance broker who understands the risks faced by a HNW person. It does depend what you think HNW is – at least a few million likely meets the requirements of a HNW brokerage (often called “Private Client” or something similar).
Lot of variables to this. If he’s traveling for business is his employer supplying the rental? How often does he rent a car? What is “fairly high” net worth?
He may need a non-owners auto policy. Umbrellas don’t kick in until regular policy limits are exhausted.
Typically $250k-$500k
Buy yeah, it sounds like a good idea for him