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Umbrella Insurance Layer Calculator

Umbrella coverage stacks in layers. This calculator sizes the total premium.

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Total limit

$25,000,000

Total premium

$39,000

Blended rate on line

0.156%

How the math works

Total limit = primary + excess layers. Premium = sum of all layer premiums. Rate on line = total premium ÷ total limit.

Compare rate-on-line at each layer to identify inefficient layers. If your primary is priced at 0.9% and first excess at 0.15%, consider raising primary retention — a $2M to $5M bump on primary often comes with less than proportional premium increase thanks to loss distribution economics.

How to Use

  1. Enter primary liability limit.
  2. Enter primary premium.
  3. Enter excess layer 1 limit.
  4. Enter excess layer 1 premium.
  5. Enter excess layer 2 limit.
  6. Enter excess layer 2 premium.
  7. Read total limit and premium.

Frequently Asked Questions

Layering?

Primary GL: $1-2M per occurrence. First excess: $5-10M. Second excess: $10-25M. Third: $25-50M. Each layer priced lower (rate decreases as severity decreases). $25M stack often 2-4x primary GL premium.

Who needs stack?

Portfolio owners (multiple assets, cross-liability). High-risk assets (pools, playgrounds, higher traffic). Commercial landlords. Hospitality. Each benefits from $10M+ umbrella above primary. Residential portfolio of 100+ units: $25M+ common.

Rate declines?

Primary GL $2,000/unit annual. First excess $400-800/unit for next $5M. Second excess $200-400 for next $10M. By third excess: $100-200 per unit per $10M. Rate of premium per dollar of coverage drops 50-80% per layer.

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