Umbrella Insurance Calculator
Calculate how much umbrella coverage you need based on your net worth, assets, and liability risk factors.
Financial Profile
Risk Factors
Current Coverage
Recommended Umbrella Coverage
$2M
Risk Level: Low (3/10)
Estimated Premium
$275/yr
Cost per $1M
$138/yr
Coverage Tiers
Important Notes
- At $138/year per million, umbrella insurance is one of the best bargains in insurance.
Estimates are approximate. Contact your insurance provider for actual quotes based on your complete risk profile.
What Is Umbrella Insurance?
Umbrella insurance is extra liability coverage that kicks in after your auto or homeowners insurance limits are exhausted. If you cause a serious car accident that results in $800,000 in injuries and your auto policy only covers $300,000, you're personally responsible for the remaining $500,000. An umbrella policy would cover that gap. It also covers claims your underlying policies don't — like libel, slander, and false arrest — making it one of the most underrated types of insurance.
Umbrella Insurance Cost (2026)
| Coverage Amount | Typical Annual Cost | Monthly Cost |
|---|---|---|
| $1 million | $150-$300 | $13-$25 |
| $2 million | $225-$400 | $19-$33 |
| $3 million | $300-$500 | $25-$42 |
| $5 million | $450-$700 | $38-$58 |
| $10 million | $800-$1,200 | $67-$100 |
Rates vary based on risk factors. Rental properties, teen drivers, and pools/trampolines increase premiums.
Who Needs Umbrella Insurance?
| Situation | Recommended Coverage | Why |
|---|---|---|
| Net worth over $300K | $1-2M minimum | Assets at risk in a lawsuit |
| Rental property owner | $1M per property | Tenant injuries, property claims |
| Teen driver in household | $1-2M extra | Inexperienced drivers = higher accident risk |
| Pool, trampoline, or dog owner | $1M minimum | "Attractive nuisance" liability |
| High-income professional | Net worth + 5yr income | Courts can garnish future wages |
| Board member | $2-5M | Personal liability from board decisions |
How Umbrella Insurance Works
An umbrella policy sits on top of your existing auto and homeowners insurance. Your underlying policies pay first, up to their limits. The umbrella then covers the excess. For example, if you're in a car accident that causes $1.2 million in damages and your auto policy covers $500,000, the umbrella pays the remaining $700,000 (up to your umbrella limit). Most insurers require minimum underlying limits — typically $300K/$500K auto liability and $300K homeowners liability — before selling an umbrella policy.
Frequently Asked Questions
Is umbrella insurance worth it?
At $150-$300/year for $1 million in coverage, umbrella insurance is among the cheapest insurance per dollar of protection. A single serious car accident or dog bite lawsuit can easily exceed $500,000. If you have any assets to protect — a home, retirement savings, future income — umbrella insurance is almost always worth the cost. The question isn't whether to buy it, but how much to buy.
Does umbrella insurance cover lawsuits?
Yes — umbrella insurance covers liability lawsuits, including legal defense costs. It covers bodily injury, property damage, and certain personal injury claims (libel, slander, defamation). It does not cover your own injuries, your own property damage, intentional acts, business-related claims, or contractual liability.
Can I get umbrella insurance without homeowners insurance?
Most major insurers require you to have both auto and homeowners (or renters) insurance with them before selling an umbrella policy. Some specialty insurers will sell standalone umbrella policies, but they're more expensive. If you rent, a renters insurance policy typically satisfies the requirement.
See also: Homeowners Insurance Calculator and Auto Insurance Estimator.