Umbrella Insurance Coverage Calculator
Size a personal umbrella liability policy from the assets and future income you need to shield from a lawsuit.
How it works
Exposure = assets + income × years · Gap = max(0, exposure − existing limits) · Umbrella = gap rounded up to the next $1,000,000
Umbrella insurance is extra liability coverage that sits on top of your auto and home policies, protecting you when a judgment exceeds their limits. A common rule is to carry umbrella limits at least equal to your net worth, because a plaintiff can pursue your savings, investments, home equity and even future wages. Umbrellas are inexpensive per dollar of coverage since large claims are rare, so most advisers round up to the next round million.
Worked example
With $750,000 of protectable assets and five years of $90,000 income, exposure is $1.2M. Subtracting $300,000 of underlying liability leaves a $900,000 gap, which rounds up to a $1,000,000 umbrella policy.
Frequently asked questions
How much umbrella coverage do I need?
At minimum, match your net worth — the assets a lawsuit could reach. Many advisers add a cushion for future income, since a court can garnish wages, and round up to the next $1M because coverage is cheap.
What does umbrella insurance cover?
It covers liability claims — bodily injury or property damage you are legally responsible for — that exceed the limits on your auto or homeowners policy, plus some claims those policies exclude, like libel or slander.
Why is umbrella coverage so cheap?
Because it only pays after your underlying policies are exhausted, large claims are statistically rare. A $1M umbrella often costs a few hundred dollars a year, making it one of the best value-per-dollar coverages available.
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Educational estimate, not insurance or financial advice — real premiums and coverage depend on underwriting, your state and the specific policy.