Who needs an umbrella policy?

Generally recommended if your net worth exceeds $300,000, you own property or employ domestic workers, have a pool or trampoline, or have teen drivers. Cost ($150-$400/year) is very low relative to protection.

What does an umbrella policy cover?

Extends liability coverage beyond auto/home limits. Covers bodily injury, property damage, personal injury including libel and slander, and some international incidents.

How much umbrella coverage do I need?

Generally, match your net worth. If you have $1.5M in assets, a $2M umbrella is reasonable. Rates are economical — the incremental cost per million often decreases as coverage increases.

Umbrella Policy Cost-Benefit Calculator

Assess whether an umbrella liability policy is cost-effective given your net worth, risk exposure, and annual premium. $1M-$5M coverage typically costs $150-$400/year.

Principal ($)

Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Assess whether an umbrella liability policy is cost-effective given your net worth, risk exposure, and annual premium. $1M-$5M coverage typically costs $150-$400/year. Use the umbrella policy result to inform your calculation.

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Umbrella Policy Cost-Benefit Calculator

How to Use

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Frequently Asked Questions

Who needs an umbrella policy?

What does an umbrella policy cover?

How much umbrella coverage do I need?