Let's say that your net worth is $1 million and, to protect yourself, you take out an umbrella insurance policy with a maximum liability of $1 million.

Then suppose something terrible happens and you get sued.

Is it possible that you could get sued for $2 million and that you would lose everything despite having insurance?

It seems that the recommendation for umbrella insurance is to get coverage equal to your net worth. If you can get sued for more than the maximum liability of the insurance, then that seems like bad advice.

2 Answers 2


You can be sued for any amount of money that a lawyer and plaintiff desire.

The issue is what is the amount of the judgement against you? If it's more than the amount of umbrella insurance that you carry then you're liable for the difference. It's up to you to decide if you're willing to pay for more than a million dollar of coverage.


Besides Bob Baerker's good answer ...

People, especially those who exaggerate injuries, typically go after the "easy" money. It is a lot easier to attempt to settle with the insurance company, than to go after your assets.

The person suing doesn't necessarily know how many assets you have. You could have a nice house and car, but still be in debt. Or, you could have a modest house and car and have a ton of money in the bank.

Be aware that if you are over-insured, you put a target on your back. If someone is slightly injured, they are more likely to exaggerate and go for the home run.

If you are under-insured and you really hurt someone, they might decide that you have assets worth going after. This is the case you should protect yourself against.

  • I asked the same question here before and in the answers or comments someone mentioned "discovery". Apparently ambulance chasers can indeed learn what assets you have, before deciding how much to sue you for. Commented Aug 21, 2022 at 21:17

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