Calculate recommended umbrella insurance coverage based on net worth, assets, risk factors, and existing liability limits.
Umbrella insurance is excess liability coverage that pays after your auto and homeowners policies are exhausted, and the amount you need is not a legal requirement but a judgment about how much a lawsuit could take from you. This tool takes your net worth, your current auto and home liability limits, and a list of common risk factors - teenage drivers, pools, trampolines, dogs, boats, rental properties - and returns a recommended limit, usually in $1 million steps with a $1 million floor. The surprise most users hit is that the smallest policy most carriers sell is $1 million - far more than expected - for a few hundred dollars a year.
The working rule of thumb is that your umbrella limit should at least equal your net worth, so a judgment against you cannot exceed what your insurers plus you can pay. The calculator compares your stated net worth against that baseline and the $1 million policy floor, then reports the recommended limit in the $1 million steps policies are actually sold in.
Each factor you flag - a driver under 25, a pool, a trampoline, a dog, a boat, an owned rental - raises the recommended limit, because each is a plausible source of a large liability claim. The tool also checks your existing auto and homeowners liability limits, since an umbrella only attaches after those are exhausted and carriers commonly require underlying minimums like 250/500/100 for auto and $300,000 for home liability.
Strictly, no - the coverage target is a rule of thumb, not a legal requirement, and high auto and home limits alone can protect your assets. But one lawsuit can exceed $1 million regardless of what you own, and the shortfall would come out of future earnings. Since $1 million is the smallest policy most carriers sell and costs a few hundred dollars a year, most advisors recommend it anyway.
No. Umbrella premiums depend on your auto and home carriers, state, claims history, and specific risks, so the tool sizes the limit and quotes come from insurers. In most states the first $1 million runs roughly $150 to $350 per year, and each additional million costs less than the one before it.
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