A median home value of $564,100 in a town with a large retired population. A great many Prescott households hold most of what they have in an address with no mortgage against it, which is exactly what a judgment looks for.
Equity without debt is the most reachable kind. A lender has no claim on it, and neither does anything else standing in the way.
Three things about protecting what has already been accumulated rather than what is being earned.
Property ownership is a matter of public record and equity in it is not protected by a mortgage. For a household whose working years are behind them, that equity is not replaceable through future income, which makes a liability claim against it a different kind of event from the same claim against a thirty year old.
Some retirement assets have protections and others do not, and the rules are specific rather than general. Planning on the assumption that everything is sheltered is how households discover the exceptions at the worst possible moment. An umbrella sits in front of the question entirely.
A million dollars of additional liability cover generally costs a few hundred dollars a year, and the second million costs considerably less than the first. Measured against what it stands in front of, it is the least expensive thing on most households’ insurance.
The arithmetic rather than a product recommendation.
Home equity, savings, investments outside protected accounts. That total sets the number.
An umbrella requires stated minimums beneath it on home and auto. Those usually need raising first.
It is cheaper than the first. For most households at this equity level it is the right stopping point.
Tell us roughly what you own outside retirement accounts and what your current limits are.
We work out the number from your position rather than suggesting a default.
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