There’s a limit as to the size of an umbrella that an insured feels is reasonable to carry. About $5M is about $850-$900/year. After $5M, many insurers want their underwriters to go over every cent that you want to insure- that is if you are an individual and not a corporation. At some point, you have to assume that a tort case will not likely payout more than $5M. You’d really have to do something “extraordinary “ to be hit with a judgment that high.
I have had a number of friends over the years who have had to turn to their liability umbrellas to pay out on a settlement. Some have had to seek counsel just to force their insurer to pay. I guess I don’t like or trust insurance companies - and have seen lots of sleazy behavior.
Does your wife represent people awarded the claims, or those ordered to pay them? Two different ends of the stick.
Personally, I would never go through litigation for any substantial amount of money unless I had a good attorney defending
me. I certainly would not rely on insurance company counsel.
There are a lot of people out there that will go all out to take what they can get from you. You can never be too careful. It only has to happen once to decimate your financial position. You definitely want to avoid that.
It always is best to avoid any situation where you could be accused of negligence - like removing a little sound-maker from a Tesla. It’s just not worth the 1 in a million chance that it will come to bite you.
Then again, I once lived in a home that
did get struck by lightning twice (in the same storm). Just an example that the improbable can happen. Sold that place soon after that!