Umbrella Policy Coverage Calculator
Recommended umbrella coverage = net worth + 5-10× annual income (lawsuit-protection rule of thumb).
Result
Recommended umbrella
$1,000,000
Round up to nearest $1M tier.
- Net worth$500,000
- Income × 5$500,000
- Raw recommendation$1,000,000
- Rounded tier$1,000,000
- Annual cost (rough)$150
Step-by-step
- Recommended = net worth + income × years = 500,000 + 500,000 = 1,000,000.
- Round up to nearest $1M policy tier: $1,000,000.
How to use this calculator
- Enter net worth (assets minus debts).
- Add years of income to protect (5-10 typical).
- Round up to the nearest million-dollar policy tier.
About this calculator
An umbrella policy provides extra liability coverage above your auto and home liability limits. Recommended coverage equals at least your net worth (assets a lawsuit could reach) plus 5-10 years of income (protect against future earnings being garnished). Umbrella policies are cheap — typically $150-300 per million of coverage per year.
Frequently asked
Underlying auto/home liability covers the first $300-500k. Umbrella only kicks in beyond that, where claims are rare.
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