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Umbrella Insurance Calculator

Umbrella insurance sits above the liability limits on your auto and home policies. It's the cheapest large-coverage insurance you can buy. This calculator sizes coverage against your net worth plus future income and estimates premium by exposure.

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Recommended coverage

$3,000,000

net worth + 8× income

Annual premium estimate

$945

Cost per $1M

$315

typical $150–$350

How the math works

Umbrella insurance sits above your auto and home liability limits. A $1M policy typically costs $180–$350/yr. Rule of thumb: carry coverage equal to net worth plus 5–10× annual income, rounded up to the next million.

Landlords, pool owners, and anyone with a public profile carry more. Each rental property should have its own LLC and a commercial umbrella on top — personal umbrellas often exclude rental activities above 2–3 units.

How to Use

  1. Enter net worth — the assets a judgment could attach.
  2. Enter annual income — future earnings can also be garnished.
  3. Pick exposure level. Pools, trampolines, teens driving, and rentals all push into higher tiers.
  4. Enter rental property count. Each rental adds premium and often requires endorsements.

Frequently Asked Questions

How much umbrella coverage do I need?

Rule of thumb: net worth plus 5–10× annual income, rounded up to the next million. So $1.1M net worth + $185k income → $2M or $3M policy. Landlords typically carry more for additional asset protection.

Does umbrella cover rental properties?

Personal umbrella usually covers 1–2 rentals but excludes larger rental activities. Beyond that, carry a separate commercial umbrella with landlord-specific coverage. Each rental should be in its own LLC for liability isolation.

What doesn't umbrella cover?

Intentional acts, business activities (if personal umbrella), contractual disputes, professional malpractice (need separate E&O), and anything excluded in the underlying policies. Review the exclusions carefully.

Do I need minimum underlying limits?

Yes — umbrella insurers require minimums on auto and home (typically $250k/$500k auto liability, $300k home liability). Raising underlying limits to unlock umbrella often has its own cost-benefit story.

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