Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Umbrella coverage to buy
$2,000,000
Raw liability need
$1,850,000
Rounded to $1M increment
$2,000,000
Gap above underlying limits
$1,500,000
Estimated annual premium
$480
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How to use this
- 1Enter net worth ($).
- 2Enter annual household income ($).
- 3Enter years of future earnings to protect.
- 4Enter risk factors (pool, teen driver, dog breed, rental, boat).
- 5Enter existing auto + home liability limits (combined) ($).
- 6Read your umbrella coverage to buy on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
An umbrella policy sits on top of your auto and homeowners liability limits and pays out after those are exhausted. The right size isn't a guess — it's driven by your net worth, future earnings exposure, and specific risk factors like a pool, trampoline, teen driver, or rental property. Underwriters and financial advisors generally recommend coverage equal to at least your net worth plus a buffer for future earnings that a judgment could garnish. This calculator adds your net worth to a multi-year earnings exposure, adds a flat amount per risk factor you carry, then rounds up to the nearest $1M increment since umbrella policies are sold in $1M steps starting at $1M. It also nets out your existing underlying liability limits so you see the umbrella gap, not just the raw need.
Worked example
Using the values the calculator loads with:
Inputs
- Net worth: 750000 $
- Annual household income: 120000 $
- Years of future earnings to protect: 5
- Risk factors (pool, teen driver, dog breed, rental, boat): 2
- Existing auto + home liability limits (combined): 500000 $
Results
- Umbrella coverage to buy: $2,000,000
- Raw liability need: $1,850,000
- Rounded to $1M increment: $2,000,000
- Gap above underlying limits: $1,500,000
- Estimated annual premium: $480
What each field means
Inputs
- Net worth ($)
- The net worth used in the calculation, measured in $. Starts at 750000 $ so you have a working example on load.
- Annual household income ($)
- The annual household income used in the calculation, measured in $. Starts at 120000 $ so you have a working example on load.
- Years of future earnings to protect
- The years of future earnings to protect used in the calculation. Starts at 5 so you have a working example on load. Accepted range: 0–15.
- Risk factors (pool, teen driver, dog breed, rental, boat)
- The risk factors (pool, teen driver, dog breed, rental, boat) used in the calculation. Starts at 2 so you have a working example on load. Accepted range: 0–10.
- Existing auto + home liability limits (combined) ($)
- The existing auto + home liability limits (combined) used in the calculation, measured in $. Starts at 500000 $ so you have a working example on load.
Results
- Umbrella coverage to buy
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Raw liability need
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Rounded to $1M increment
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Gap above underlying limits
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated annual premium
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why do I need umbrella coverage if I already have auto and home insurance?
Standard auto and home policies usually cap liability at $250k–$500k per occurrence. A serious accident — especially one involving a lifelong injury or wrongful death — can produce judgments well above $1M. Umbrella coverage kicks in once the underlying policy limit is exhausted, protecting your savings, home equity, and future wages from garnishment.
Do I need umbrella coverage if my net worth is low?
Yes, if your income is meaningful. Courts can garnish future wages to satisfy a judgment, so young professionals with modest net worth but strong earning potential are still exposed. That's why this calculator weights future income, not just current assets.
How much does umbrella insurance typically cost?
Roughly $150–$300 per year for the first $1M of coverage, with each additional $1M costing less due to pricing tiers. Risk factors like pools, trampolines, certain dog breeds, or teen drivers raise the premium and sometimes require the insurer to review your underlying policies first.
What does umbrella insurance not cover?
It doesn't cover your own injuries, damage to your own property, business liability (that needs a commercial umbrella), or intentional acts. It also requires you to carry minimum underlying limits on auto and home policies — insurers typically require at least $250k/$500k auto liability before issuing umbrella coverage.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Umbrella Insurance Sizing Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/umbrella-policy-sizing
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/umbrella-policy-sizing" target="_blank" rel="noopener">Umbrella Insurance Sizing Calculator — RevenueLab</a> (2026).</p>
Source: [Umbrella Insurance Sizing Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/umbrella-policy-sizing) (2026).