You can’t be leaving Fremont!
I know, just for cheaper insurance, imagine me selling the Fremont property that is rising in value each day. My credibility would be shot. I will suffer with the higher cost of insurance for now. But I am not happy with Geico and its lame underwriting guidelines. Yes, a 4plex is four separate exposures but it is on the same lot. Surely, that shouldn’t be considered the same as 4 SFHs in different locals and lots. That would be my argument anyway…
Does Geico insure property?
No but they sell umbrella 
Can someone explain how a house with more mortgage is less attractive than a house with less mortgage? Liability suit attacks your total asset not just the insured location, so I can’t see how mortgage come into play.
Also, anyone has any idea why buy umbrella till your networth? Insurance companies assert is the way to go. Rationale?
Isn’t it just the idea that you have less skin in the game or vesting let’s call it on that house with more mortgage vs one that is say fully paid off???
Doesn’t matter. With or without mortgage your net worth won’t change. Liability suit attacks you not the insured location (the house where bodily injury happened). In a lawsuit, you’re sued for $2 mil, say, nothing to do with insured location’s worth.
Net worth = assets - liabilities. The mortgage makes your net worth lower. My understanding of insurance for net worth is it’s very unlikely someone could win a judgement against you for more than your net worth. It’s very, very difficult to win a lawsuit for future earnings. That means you only need to protect net worth.
Someone should sell divorce insurance. Can you image than? We already have research that’d allow you to create actuarial tables to predict divorce based on different criteria. You could let people buy insurance against future child support and alimony payments.
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They also resell property insurance underwritten by others like travelers, homesite etc
you have a biz idea there. Just wrap it up as a cloud play and pitch to Sand Hill folks.
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[quote=“marcus335, post:68, topic:539”]
My understanding of insurance for net worth is it’s very unlikely someone could win a judgement against you for more than your net worth. It’s very, very difficult to win a lawsuit for future earnings. That means you only need to protect net worth.
[/quote]So for the same accident. A billionaire would be sued for $1B. A millionaire would be sued for $1 million. If your net worth is $100k, you would be sued for $100k. This is called fair trial and justice?
[quote=“marcus335, post:68, topic:539”]
Net worth = assets - liabilities. The mortgage makes your net worth lower.
[/quote]Say, I’ve $1 million. Three scenarios:
a. Downpayment $200k for a $1 million house, mortgage = $800k. And $800k invest in stock.
Net worth = Assets - Liabilities = $1 mil + $800k stocks - $800k mortgage= $1 mil.
b. Keep as cash.
Net worth = $1mil - 0 = $1 mil.
c. Buy 3 houses of $1 mil each, downpayment $300k each, mortgage $700k each. Cash $100k.
Net worth = $3 mil (3 houses) + $100k (cash) less $2.1 mil mortgage (liabilities) = $1 mil.
That is, how you structure your asset and liability won’t change net worth.
The legal system is far from perfect.
Good point. Now I don’t get it either.
Supposing, you and me are in dispute and I sue to in court for 1.5M claim and I win (assume I won !!). You will file bankruptcy or forced to file bankruptcy !
In case (b), court will grant you bankruptcy, pay me 1M and void rest of the payment.
In case (a), court has to look how much you own to bank and how much it can pay me. In this case, bank and I share whatever you have left and rest of the amount will be void for both me and bank
in case (c), court has to see three home’s lender and me and provide the judgement.
In case (b), I get more than case (a) which is more than case (c).
I am discouraged to sue you when you have too much liability as I feel that I may not get so much by suing you !
You are implying something going on behind the scene 
, leveraging on lenders’ influence 
So the key is not the mortgage per se but the lenders’ influence. Got it 
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Divorce insurance would require personality profiling. .Some people just can’t along…doomed for divorce. .some multiple times…
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I’m shopping for umbrella insurance but it seems like every company wants me to call for a quote except Geico. How much do you guys pay?
Depends on coverage.
Mine is USLI $800 per year.
It’s only a few hundred a year, but I had to have certain minimum coverage on home and auto first. I’m sure those minimums vary by company, so you need to look at total cost of insurance.
Mine is $358/year for 1M, but again depends on coverage. Since I have all auto, home insurance with AAA, they asked me to increase each liability to 500k (like auto…etc) before giving UMLI. That has increased my auto and home insurance.
I’m trying to find an insurance carrier that doesn’t require me to purchase auto with them to get the umbrella coverage. Seems like a huge hassle to call each one to find out… 