Umbrella Coverage Layer Calculator

Umbrella policies layer excess coverage over primary limits.

Primary GL limit

Umbrella limit

Umbrella premium annual

Risk probability %

Avg claim above primary

Expected umbrella value

$52,000

Loss ratio

2.86%

Expected claim amount

$80,000

How the math works

Expected claim = prob × avg claim above primary. Value = expected − premium.

1% × $8M = $80k expected − $28k premium = $52k expected umbrella value.

How to Use

Enter primary GL limit.
Enter umbrella limit.
Enter umbrella premium.
Enter risk probability %.
Read umbrella value.

Frequently Asked Questions

Umbrella structures?

Sits over primary GL, auto, and employer liability. Typical layers: $5M, $10M, $25M, $50M, $100M. Each layer priced $1.5-8k per $1M. Larger portfolios stack multiple insurers for $100M+.

Typical coverage?

Multi-family portfolio: $10-25M per property, $25-50M portfolio-level. Commercial office: $25-100M depending on height and exposure. High-risk (student housing, senior living): $50-100M+. Lender covenant often specifies minimum.

Claim triggers?

Slip-and-fall severe injury. Habitability litigation. Fire with wrongful death. Pool accident. Dog bite severe. Each can exceed $5-10M judgment. Umbrella kicks in after primary exhausted. Defense costs sometimes inside limit.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.