Umbrella Insurance Calculator
Determine how much umbrella insurance coverage you need to protect your assets and future earnings. Our calculator considers your net worth, liability exposure, and risk factors to recommend appropriate coverage levels.
Total Coverage Needed = (Net Worth + Future Earnings) - Current Liability
Recommended Coverage = Round up to nearest million × Risk Factor
Example: Net worth $500k, future earnings $1M, current liability $300k, medium risk. Total assets = $1.5M, gap = $1.2M × 1.2 = $1.44M. Recommended: $2M policy
What is umbrella insurance?
Umbrella insurance provides additional liability coverage beyond your standard auto and homeowners policies. It protects your assets in case of major claims or lawsuits.
How much umbrella insurance do I need?
Generally, you should have enough coverage to protect your net worth plus future earnings. Most policies start at $1 million and increase in $1 million increments.
Is umbrella insurance worth it?
Yes, for most people with significant assets. It's relatively inexpensive (often $150-400 per year for $1M coverage) compared to the protection it provides.
🔗 Related Calculators
📐 Formula
Total Coverage Needed = (Net Worth + Future Earnings) - Current Liability
Recommended Coverage = Round up to nearest million × Risk Factor
📝 Example Calculation
Example: Net worth $500k, future earnings $1M, current liability $300k, medium risk. Total assets = $1.5M, gap = $1.2M × 1.2 = $1.44M. Recommended: $2M policy
❓ Frequently Asked Questions
What is umbrella insurance?▼
Umbrella insurance provides additional liability coverage beyond your standard auto and homeowners policies. It protects your assets in case of major claims or lawsuits.
How much umbrella insurance do I need?▼
Generally, you should have enough coverage to protect your net worth plus future earnings. Most policies start at $1 million and increase in $1 million increments.
Is umbrella insurance worth it?▼
Yes, for most people with significant assets. It's relatively inexpensive (often $150-400 per year for $1M coverage) compared to the protection it provides.