liability insurance


milboltnut

New member
As of now I'm covered for 500,000 bucks for homeowners insurance for personal protection in the event I take someones life in self defense with CCW. You think its enough? Each occurance is 500 thou...
 

Interesting that you found an insurance company to take on that risk.

As for is 500K enough, who knows. All depends on the circumstances surrounding your need to defend your life with a firearm.
 
What state are you in? If in Florida it isn't necessary. Our castle laws protect the self defense shooter. If you aren't charged in the shooting, you can't be sued.

Check your state statutes, you might me wasting money.
 
It depends on your assets. Do you have more than 500K that couldn't be protected in the event you were sued? State creditors can't each an IRA or 401K. Most states will allow judgment creditors to file a judgement lien against a homestead but won't let the creditor foreclose the lien on a personal residence. Business property should already be in a separate entity.

So lets say you have 350K of hard assets at risk. 500K is more than enough. In fact, 250K might be more than enough because a lawyer looking at policy limits (hard cash, or a "bird in hand)) versus the risk of trial for nothing more than the right to try to collect the additional 100K (a risky bet, or "two birds in the brush") is going to advise his client to take the policy limits.

If the plaintiff offers to settle for the policy limits (250K) but the insurer refuses to so, thereby exposing you to a potential higher award, then most states allow you to transfer your cause of action against the insurance company to the plaintiffif the jury awards an amount higher than your policy limits. This allows the plaintiff to recover the excess award from your insurance company.

The number one rule is don't over insure your liability - all you are doing is spending money for the benefit of the person you injure.

Instead, you should spend the extra insurance premium dollars on disability or accident insurance for yourself in case you are injured by someone with very little insurance or no insurance.
 
Have read your policy? Does it not exclude liability for "intentional acts?"

It does include intentional acts only in defense of persons or property, with reasonable force. My broker insists it covers me outside the home, but I am not convinced I'm covered outside the home under my renters insurance. A seperate umbrella policy is needed.
 
It depends on your assets. Do you have more than 500K that couldn't be protected in the event you were sued? State creditors can't each an IRA or 401K. Most states will allow judgment creditors to file a judgement lien against a homestead but won't let the creditor foreclose the lien on a personal residence. Business property should already be in a separate entity.

So lets say you have 350K of hard assets at risk. 500K is more than enough. In fact, 250K might be more than enough because a lawyer looking at policy limits (hard cash, or a "bird in hand)) versus the risk of trial for nothing more than the right to try to collect the additional 100K (a risky bet, or "two birds in the brush") is going to advise his client to take the policy limits.

If the plaintiff offers to settle for the policy limits (250K) but the insurer refuses to so, thereby exposing you to a potential higher award, then most states allow you to transfer your cause of action against the insurance company to the plaintiffif the jury awards an amount higher than your policy limits. This allows the plaintiff to recover the excess award from your insurance company.

The number one rule is don't over insure your liability - all you are doing is spending money for the benefit of the person you injure.

Instead, you should spend the extra insurance premium dollars on disability or accident insurance for yourself in case you are injured by someone with very little insurance or no insurance.



Good advice.
 
Most states with CC have castle laws, I would check into this as mikecu suggests.
What state are you in? If in Florida it isn't necessary. Our castle laws protect the self defense shooter. If you aren't charged in the shooting, you can't be sued.

Check your state statutes, you might me wasting money.
 
If you get sued for $2 million and are insured for $500k, plan on wage garnishment for life. Here in the CA courts they deem a life is worth about $1.5M. Now if a bad guy gets killed and the cops give you a medal that's great, his family will still sue because he was a great guy. At the very least the insurance co will settle to get it over with. It's the civil side that will bite you. not the criminal side.
 
If you get sued for $2 million and are insured for $500k, plan on wage garnishment for life. Here in the CA courts they deem a life is worth about $1.5M. Now if a bad guy gets killed and the cops give you a medal that's great, his family will still sue because he was a great guy. At the very least the insurance co will settle to get it over with. It's the civil side that will bite you. not the criminal side.

Garnish wages? Got proof of your statement?
 
If you get sued for $2 million and are insured for $500k, plan on wage garnishment for life. Here in the CA courts they deem a life is worth about $1.5M. Now if a bad guy gets killed and the cops give you a medal that's great, his family will still sue because he was a great guy. At the very least the insurance co will settle to get it over with. It's the civil side that will bite you. not the criminal side.

Most states allow wage garnishments for judgements, but the amount is limited to 10% of gross wages.

In any event, if you have a 500K policy it is unlikely that the plaintiff's attorney is going to go forward with the case if the insurance company offers the policy limits. Personal Injury lawyers are in it for the money. They aren't going to put time and effort into a case to collect 1/3 of a 10% wage levy.

If the insurance company offers the limits they are going to tell their clients to take the money. If the insurance company does offer the policy limits and a larger judgment is awarded, then the defendant has a cause of action against his insurance company for the excess, and typically the defendant transfers that cause of action in exchange for release from the judgement.

So unless you have liquid assets in excess of 500K, a 500k policy is more than enough. Buying more than that is just increasing the liquid assets of the insurance salesman.
 
I make 6 figures, they will come after me. Proof of my statement? I offer these three things, just put 2 and 2 and 2 together.

1. During CCW class the instructor told us what civil settlements run in the courts, i.e. what a life is worth.
2. I once sued a guy who was broke. My judgement was good for 15 years. I sold the note to a collections agency.
3. A workmate recently won a judgement for five times what the other guy was insured for. He was all depressed that he would never see the money, but lawyers are coming out of the woodwork to assist in collection, for a modest fee.

But the extra insurance is only $226 a year for me. If the money is more important to you, then don't buy it.
 
How sad it is we have this discourse... Someone armed with a gun, knife, hammer etc... attempts to enter my home and take goods from me. Threatens my life and or the lives of my family members in the process of protecting him/herself while in the commission of a felonious act. I defend myself by shooting him/her, stabbing him/her, etc... The attempted robber dies as a result of the injury I inflict. The family of the "someone" decides his/her life was worth some amount of money and decides to come after me for it via a law suit.

Now the justice system facilitates another robbery attempt. I having initiated none of the events by any actions of mine, have to worry about $$ while in the process of defending myself from people who wish to take more of my $$ without providing me with any goods or services in exchange for it. The new "American Way"...
 

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