Umbrella Coverage Gap Calculator

Umbrella attaches above primary. This calculator checks fit.

Primary limit

Umbrella attachment

Umbrella limit

Expected claim

Coverage gap

Total stacked coverage

$6,000,000

Primary-umbrella gap

How the math works

Attachment gap = umbrella attachment − primary. Coverage gap = max(0, claim − total stack) + attachment gap.

On $1M primary + $1M umbrella attachment = tight fit. If umbrella attached at $2M instead, $1M donut hole between primary and umbrella. Claims in that range uninsured. Common gap that hurts when it happens.

How to Use

Enter primary limit.
Enter umbrella attachment point.
Enter umbrella limit.
Enter expected claim.
Read coverage gap.

Frequently Asked Questions

Attachment point?

Umbrella triggers when primary exhausted. Must match primary exactly to avoid gap. E.g., $1M primary + $5M umbrella attaching at $1M. Gap if umbrella attaches at $2M — exposure from $1M to $2M uninsured.

Common gaps?

Primary has lower per-claim limit than umbrella attachment. E.g., primary $1M per claim / $2M aggregate; umbrella attaches at $2M. Second claim in year: primary aggregate exhausted at $1M; umbrella doesn't kick in until $2M. Donut hole.

Fix?

Tight umbrella manuscripting with primary attachment exactly matching. Primary carrier and umbrella carrier share language. Annual audit of stacking. Adequate primary aggregate (ideally equal to or above umbrella attachment). Specialist broker review.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.