Protect what you have built.
One lawsuit above your auto or home liability limits can reach your savings, your home equity, even your future paychecks. Umbrella insurance is the cheap layer that sits on top. Enter what you own and see how much coverage protects it.
What you are protecting
Home equity, investments, savings and other assets minus what you owe.
Future earnings a judgment could garnish. Some advisors add a few years of income to the target.
Teen driver, swimming pool, trampoline, dog, rental property, boat or ATV. Each one raises your exposure.
Umbrella pays only above these. Insurers usually require them maxed first, typically $250k to $500k.
What this means for you
Coverage versus what you are protecting
Recommended coverage next to your net worth
How the liability layers stack
Your protection from the first dollar up
Underlying auto or home liability pays first. Umbrella sits on top and covers the rest.
Coverage scorecard
Coverage and premium by net worth
Recommended coverage rounds net worth up to the next $1M, minimum $1M. Premium is an estimate at about $200 per $1M.
| Net worth | Recommended coverage | Est. annual premium | Cost per $1M |
|---|
Umbrella insurance, explained
What Umbrella Covers
Extra liability above auto and home policies. If you injure someone in a car accident with $500k in damages but only $300k auto liability, umbrella pays the gap. Without umbrella, your assets pay.
Coverage Targets
Minimum: cover net worth + 5-10 years future income. Rule of thumb: $1M umbrella per $1M of net worth, minimum $1M. Cheap insurance, typically $200-500/year per million.
Higher Risk Factors
Teen drivers (massive risk), swimming pool, trampoline, dog (especially certain breeds), rental property, boat, ATV, frequent house guests. Each meaningfully increases liability exposure.
Why So Cheap
Umbrella claims are rare but catastrophic. Insurance companies bet on rarity. For policyholder, cheap protection against worst-case scenario. Best risk-adjusted insurance product available.
Common questions
How much umbrella do I need?
Start with $1M minimum. Add $1M per $1M of net worth above that. Increase for high-risk factors.
How much does it cost?
$200-500/year for $1M coverage. Each additional million typically $100-200/year. Very cheap relative to coverage.
Do I need underlying coverage?
Yes, auto and home liability must be at policy minimums (usually $250k-500k auto, $300k home). Umbrella sits above those.
Does umbrella cover business?
Personal umbrella covers personal activities. Business activities need separate commercial umbrella. Don't confuse.
Does umbrella cover intentional acts?
No, only negligence and accidents. Criminal acts and intentional harm excluded.
Estimates for planning only. Actual umbrella premiums depend on your carrier, state, driving record, claim history and the underlying policies you carry. Coverage targets are a rule of thumb, not legal or insurance advice. Talk to a licensed agent before you buy.