Personal umbrella insurance provides $1 million or more of additional liability coverage above your auto and home policies -- typically for $150 to $300 per year. Most households significantly underestimate the scenarios where their underlying liability limits could be exhausted. This calculator helps you determine whether your current limits leave you exposed and how much umbrella coverage makes sense.
Enter your estimated net worth (sum of home equity, savings, investments, minus outstanding debts). Enter your current auto and home liability limits. Check applicable risk factors: swimming pool, trampoline, rental property, teenage drivers, dogs. The calculator returns a recommended coverage amount and estimated annual premium range.
An umbrella policy layers on top of your auto and home liability -- it does not replace them. When a claim exceeds your underlying policy's limit, the umbrella covers the excess up to its own limit. Most umbrella carriers require minimum underlying limits before coverage attaches: typically 250/500 or 300 CSL for auto and $300,000 for home. Umbrella policies also typically cover liability scenarios that underlying policies handle inadequately -- defamation, landlord liability, and broader personal injury claims.
Anyone with assets worth protecting and any common risk factor -- pools, young drivers, dogs, rental property. As a rule of thumb, umbrella coverage makes sense for anyone whose net worth exceeds their combined auto and home liability limits.
No. Standard personal umbrella policies exclude business activities and professional liability. A commercial umbrella or errors and omissions policy is needed for business exposure.
If you cause an accident and are found liable for an amount exceeding your auto policy's bodily injury limit, the umbrella pays the excess up to its limit, protecting your savings, home equity, and future wages from the judgment.